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Credit Card Debt vs College savings

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    #31
    one more : smoking(not me) $150/mont

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      #32
      OK here's my last attempt at trying to explain this. If you were really only spending what you have listed here for us then you would have $2,611 left over at the end of each month to put toward your debt...instead you're struggling to get by. Is it at all concerning to you that you are spending $2600 A MONTH that you can't account for?! If all of that was going toward debt you'd be paying off your creditors at the rate of $31,000 a year. Something to think about. Yes it's work, but you need to account for every penny that passes through your hands and you will be able to make progress.

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        #33
        Originally posted by riverwed070707 View Post
        If you were really only spending what you have listed here for us then you would have $2,611 left over at the end of each month to put toward your debt...instead you're struggling to get by.
        Exactly what I've been trying to say. So far, the expenses you've listed total $4,913 against a monthly net income of $7,524. Where is the other $2,611 going? If you don't know, you need to find out ASAP. That is nearly 35% of your monthly income. There must be some pretty big expenses that you haven't mentioned yet accounting for over $31,300/year.
        Steve

        * Despite the high cost of living, it remains very popular.
        * Why should I pay for my daughter's education when she already knows everything?
        * There are no shortcuts to anywhere worth going.

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          #34
          I think we need to put a few things into perspective here. It has been stated over and over again that there is no way someone with $112k income should have so much debt. My concerns are primarily the credit card, the car loan, and the home equity. The mortgage is fine; that is not what is killing the OP. Also it is clear that the debt itself is not killing the OP; it is the fact that they do not know where $2,611 per month is going. Have we factored in taxes, 401k, fringe benefits? Someone said that the OP has $7,500 per month in income which amounts to $90k per year. Are you telling me that only $22k went to taxes, 401k, and fringe?

          So what we need to understand is what is take home pay. Gross pay is irrelevant because that is not what the OP has to play with.

          Next, why hasn't anyone suggested selling the car? I think that a $17k car loan is way too much no matter what income you're at; especially if you're already carrying some debt. Sell the car and get a reliable/inexpensive car for cash.

          Next. Emergency fund. The OP stated that some financial problems came up as a result of emergency home repairs, water heater replacement, yadda yadda yadda. This is something that an emergency fund should have covered. Obviously a $5k emergency fund is not sufficient as that is not even one month of income.

          Finally, spending is out of control somewhere. We need to know what the take home pay is. Even after everything is considered, I still think there is money that is not being accounted for. Plain and simple, ants are picking up and carrying away some money and the OP doesn't know about it. Get on a budget, income minus outgo equals exactly zero.

          As for the kid. Why does the kid want to go to a private school? Better yet, why are you (OP) willing to pay for this or feel obligated to pay for this? You've got your hands tied with your own finances. Even after you pay off the debt, you gotta get on top of retirement. Judging by your retirment figures that you have posted, and that you have a kid that is 9 or 10, you are behind on your savings. Do yourself a favor and have a convo with your kid. Make a deal that you will cover a state school tuition. If your kid is still dead set on private school, then make the kid pay the difference. Whether that means he works or gets student loans himself. Ultimately, you gott make your kid understand that school is a luxury and not a necessity. Also someone should tell your kid that it does not make sense to go to a private school for twice the cost for the same education as a state school.

          Finally, if you cannot pay for your kids college, then so be it. As Dave Ramsey would say, he should praise you for FEEDING him and keeping a roof over his head. Bottom line: STOP WORRYING ABOUT THE COLLEGE STUFF!!!! Get your own finances in order first.

          Just my two cents
          Check out my new website at www.payczech.com !

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            #35
            Originally posted by it99 View Post
            Monthly net is 7524
            Originally posted by dczech09 View Post
            what is take home pay.
            dczech, OP answered that question. That's where the $7,500 figure came from.
            Steve

            * Despite the high cost of living, it remains very popular.
            * Why should I pay for my daughter's education when she already knows everything?
            * There are no shortcuts to anywhere worth going.

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              #36
              dczech09 Thank you for posting about not needing to put the kid through college! I keep trying to figure out why parents feel it is their duty to do so. My husband's friend is divorced and she has two kids with her ex and the parents pay a third each with the children paying the remaining third. Whether it's by scholarship, grant, or job money doesn't matter to the parents as long as the kids pay. As for me, I've gone to community college since it's what I could afford. One financial guru (I think it was one of the Dave's) said something like you can get a scholarship/loan/grant for school but you can't get one for retirement.

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                #37
                Originally posted by disneysteve View Post
                dczech, OP answered that question. That's where the $7,500 figure came from.
                Ok my bad. So that still means the OP does not know where the money is going. This is a bigger problem.

                And thanks Brandie! I don't know why parents feel they're child abusers if they don't pay their kids college. I'm on the hook for my college, and so is my sister who is in college. When we were growing up, my parents were pretty close to the poverty line. We made do with what we had. Obviously this meant my parents didnt have the resources to pay for college; they had a hard enough time keeping food on the table. My sis and I handle our own college and hardly consider our parents abusers; we're happy with the modest lifestyle that we learned to live with and we understand that college is not this big necessity that everyone preaches it to be.

                If a parent is having a hard enough time managing their finances and handling necessities and retirement, then how can a kid expect them to pay for their college, much less a private school? People need to prioritize things when budgeting and realize that college savings is fairly low on the list.
                Check out my new website at www.payczech.com !

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