We're Overwhelmed With Our Debt!

[Music] Brought to you by the Every Dollar app. Start budgeting for free today. My husband and I already know a lot of debt uh from a small business we started and I need you to guide me. Okay. How to get out of it, I guess. All right. Give us some numbers. Okay. So, we're talking if we're combining personal and business, it's about like 150. Okay. How much is from the business though? I'm just curious. Um, well, I would say all of it because we put in from personal into the business, but just the bit like the credit cards would be like 90,000. Oh, we Okay. And what's the rest of the the debt? What's the rest of the They're all They're all credit cards. All of it's on all 150s on credit cards. Yes. So, oh my word. We even opened up personal loans to pay for the credit card so we can have more space for the credit cards. It's a mess. So, how many credit cards total? Um, I would say there's about seven. Seven. And then you said you have personal loans open too. Is that included in the 150 or is that what is that? Yes, that that's included in the 150. Yeah. Okay. So your thought is like, "Hey, we use these personal loans to pay down the credit card to clear up more space so we can borrow more on the credit card." Exactly. What's the What's your income situation? Are you guys still working in the business? No. No, we it took us a while, but we brightened up to to close that business. Well, it's still open, but it's not running. Okay. Gotcha. Um, so what's your income? My husband makes about I would say 120 and I make 80. So where does that money come from? We each have jobs. Got it. Okay. So we got $200,000 combined income. Correct. Okay. Uh do you have any other debt outside the 150? I know she asked you that, but I'm just totally clarifying. This is all debt. Well, yeah, we have a a mortgage, a car if you're if if if that's what you're asking. Yeah, we want to know. So, tell us about your cars, your student loans, any anything that you owe money towards that you make a monthly payment towards. We want to know about it. So, go ahead and tell me your mortgage. I'm just curious. What do you owe on it? Um, I would say we owe it like 400,000. So, so monthly I paid 3,300 for mortgage. Okay. Um the car I paid 700 a month. I think there's like $19,000 left on it. Okay. Uh we have a leased car that's $400 a month. My son's school is $850 a month. Um my Is that private school or is that daycare? Private school. Okay. How old is he? four. Okay. Okay. Keep going. Um, my school loan is 400. And so, our personal loans, his is 1,600 a month. Mine is 850 a month. Okay. And how much? But that personal loan is included in the 150 you told me earlier. Yes. Okay. Tell me, um, when you guys get your paychecks, like after everything's taken out, what do you take home every month? What's your check look like between both of you combined? Mine uh Yeah, mine is about 2,000 and his is about Oh, no, that's on every other week. So, 4,000 about 9,000 for him. Okay, that's the good news. So, 13 net. And just a real quick question. I don't want to get bogged down on this, but why is the four-year-old in a private school? Um, because of I I don't want him to learn anything that Right. But is it prek? Yes. Okay. So, he doesn't have to be in prek. Um, I'm just wondering right out of the gate. There's some money to be saved on some home care maybe versus But I I I don't There's bigger issues going on, but y'all got to y'all got to like cut back big time. Big big time. There's the bumper sticker that Jade's about ready to walk you through. Well, I think that's I mean, jumping off with with Ken's point could be a good place to start. You know, the only way to get out of debt is there's two methods you could invoke here. you could work more, right, to have more margin. Uh, you could also cut back on your budget to find more margin or you can do a combination of both. Um, and to Ken's point, that school might be a great place to start because I don't know what you were going to say as far as like I don't want them to learn certain things. I it might be some of the same feelings that I have and my kid is in private school, but for right now it's okay. Um, or and they're in daycare and for right now it's okay. So, it might be worth it for you to invoke that when they get a little bit older. Could be that it's your kid. I was going to say, yeah, and I I may step on toes here, but since we're here, I'm going to go ahead and say it because I know a lot of Americans are thinking this, so I'm going to go ahead and say it. Get in there. You might have to put your hat on. I don't remember anything from my 12th grade year. Your four-year-old, no matter what they're trying to teach the kid, I mean, I get it. I'm not in LA. I get it. But I don't know. Well, I would be looking to save $800 a month tonight. Yeah. I mean, at the end of the day, what matters most is what you teach him at home. Yeah. But again, we're I know we're really getting into your personal life. I know. And I got to be careful. I'm not judging you. I'm just saying, you know, the four-year-old, we could cut that. That's $800 bucks a month. That's $9,600 a year. It's a lot for where you're at right now. It is a lot. We just want to highlight that it is a lot. Um, next thing is I'm looking at possibly both of these cars. I want to know about how you can get out of this lease. When is this lease over? Um, like very soon. I would say like 4 months. Okay. And then your option, you just turn the car in and you're out. Yeah. Okay. So, I would do that. Don't try to buy back the car or nothing like that. Just get out of the lease. Um, and in the meantime, do you have any money saved? Uh, no. Everything is gone. Okay. Then what I'd be doing, knowing that this lease is about to come up, I'd be like, we got to stack up $3,000 because when this lease goes away, we need to be able to buy a car in cash. And that's what that that's kind of the car plan. So, write that down in your notebook as when we've turned in this lease in 3 months, in 3 months, we'll also be buying a three to $4,000 car. I know you have the margin in your budget to do that. Okay. So, that deals with one car. Let's talk about the $19,000 car. Do you know what that car is worth? The payment was kind of high, didn't you say it was like $700? Yes, it's I think we bought it at 50 uh,000. Okay. Do you know what it's worth now? I don't. Okay, that's your second piece of cart homework. I want you to go on kellylbluebook.com, look at private sale because it sounds like if if you bought it at 50 and judging by the height of your payment, I feel like you've been paying this off kind of fast. Is that am I wrong? No, you're you're Yeah, you're right. Okay. So, you might actually you might not be upside down. And if you're not, I would still get out of this and get into something cheaper because the $700 payment, you need that money. And so now we've just found $1,100 in your in your budget with these cars and you need every dime of that to go towards paying off this this credit card debt. The good news is can I mean you guys have a good income. It's not wonderful for LA, but it's wonderful for the rest of the country. Yeah. And it's doable. And again, not telling you what to do with your kid in school, but if we take the 800 on top of that, now we're right at the doorstep of two grand that we found in your monthly budget. That goes a long way to paying off $150,000 in debt. Okay? Cuz now you're looking at if we just take 2,000 a month that you found and you put it towards debt, that's $24,000 a year. Now, that's a long haul, right? And this is a drastic change of your lifestyle. You're not going on vacation. You know, you aren't going out to eat. Uh you guys are going to have to really hustle. But but again, my my co-host today, this is a woman who who her and her husband paid off half a million dollars. Uh she needs a little pep talk as we go into the break here cuz mindset wise, what does she got to be thinking right now? You've got to be thinking the hard part is you're making a good income and to not be living in that income feels like, oh man, I've been working hard. But the time will come when you do get to do that. So just hold on. If you clean up this mess, you're going to enjoy your income like you never have before. Right now, you've kind of faux enjoyed it with all these things on payments and it's not all it's cracked up to be. But if you walk through this journey, you're going to get to enjoy the fruit of $220 plus,000 a year with no debt and payments. You can send your kid to the school that you want to and you don't have the stress uh associated with it because you'll actually be able to afford it. You can do it. You can. Appreciate the call. Create your free every dollar budget today.