Quote:
|
First, can you give us a monthly budget, rather than just total debt? How much are you bringing home each month and what are your monthly bills including debt payments? That would make things a little clearer.
|
I will work on this tomorrow and post it ASAP! We do have a budget in place, but I need to type it out on here.
Quote:
|
Absolutely get out of all the whole life policies immediately. Call your agent tomorrow and cancel all of them. They are a huge waste, especially for the kids. There is no reason at all to have life insurance on your children. You would not suffer any financial loss if they were to die (other than funeral expenses, which you could save for much more efficiently on your own). You do need a term policy on yourself even though you are a SAHM. If you were to die, your husband would need to pay for childcare and household help until the kids were grown.
|
After talking with my DH, we will do all of this, this week!
Quote:
|
Is your husband currently contributing to his 401K? If so, how much, and is there a company match?
|
He is contributing 3% and his company matches up to 3%. So, he's getting a total of 6%. We do put money (randomly) into IRA's. But haven't been completely consistent with that.
Quote:
|
Stop the 529 contributions.
|
They will stop next month. For one year and one year only!
Quote:
|
Can you lower your auto insurance premium by raising your deductibles?
|
It's already $1000 deductible.
Quote:
|
I'm concerned about the 0% CCs because it sounds like you have no plan to pay off those debts before the 0% period expires. Do you know what the rates will be when they expire? Probably a whole lot higher.
|
Yes, we do have a plan to pay them off. I am paying $270 a month on CC#3 (which only has a $25 min payment). Our goal is to have that paid off by 12-06 then I plan on taking the $270 and adding it to CC#2 plus the min. payment of $157 that we have already been paying. Like the snowball effect (isn't that what it's called?) Any extra money we are getting from odd jobs, (I sell books online), babysitting, etc is going towards paying CC#3 off.
Quote:
|
It might make sense to liquidate your mutual fund and stocks and use that $5,600 to repay debt, but it would depend on the tax consequences of those sales.
|
Yes, right now I don't think that would be a good idea. Our hope to to get out of debt. And be able to put money into those accounts monthly.