$73K in CC debt on 21 cards

[uptomyeyesindebt]

OK - here it goes.

I just returned home from 2 years in Afganistan and Iraq. I work for a government contractor and was tasked with reconstructions efforts mainly with the US Air Force. Over the course of that time, my wife went into some pretty deep depression to the point of being prescribed Lexapro.

Enough of the sob story, but during that time "we" seemed to have racked up $73K in CC debt on 21 cards. That includes regular credit cards and store credit cards. Interest rate vary but most are 22~30%.

Now, before I jump out the window (just kidding), I'm seeking advice as to where I should start. Knocking off one balance at a time will probably take forever. Bankruptcy (in my book) is not an option. Are there credible financial adivsors out there the can help a couple in this type of situation?

I have solid work, I make a good paycheck - it's just all going to these dang cards.

Any input would be greatly appreciated.

uptomyeyesindebt

[terry1156]

While I commend you for not wanting to go the bankruptcy route, it may be the best option in this situation. With that much debt, you're looking at quite a long time to get it paid off. The first thing is to figure out if your salary will make it possible and if it does, how long it will take. How much are you saving each month at the moment? What are the assets you have that can be sold worth?

Your options are bankruptcy, paying them off in full or negotiating with credit card companies to reduce what you owe. None of them are going to be easy and each comes with some negatives.

It's hard to know which one is best to recommend until we get more detail on what the rest of your financials look like.

[maat55]

How long it will take depends on how much you earn. The quickest way to pay these debts is to these things:

Find the cheapest place you can to rent.(Cheap housing own or rent)
Get a second job
Sell all unnecessary stuff.
Create an beans and rice budget, no vacations, eating out etc.
Consolidate cards to 0% if possible.
Cut up all but one card and store it away until debtfree.
If you have good equity in a home, sell it and move to a cheaper place.

Living on the least you can and earning the most you can to pay debt is the goal. Don't look at it as stepping down, look at it as a faster step toward debtfreedom and wealth building.

[disneysteve]

I don't think you've given us nearly enough information to venture an answer.

1. What is your total household income? 73K in debt is one thing if you make 200K and another thing if you make 50K.

2. Do BOTH of you work full time? If so, do either or both of you also have second jobs?

3. What is all the debt from? Where and how did that money get spent? If it got spent on experiences - dining out, travel, concert tickets, etc. then not as much you can do as if it got spent on tangible goods - clothing, furniture, jewelry and stuff that you can sell to get back some of the money.

4. Do you have any other debt? Car loan, student loans, mortgage?

5. If you own your home, how much equity do you have?

6. If you own cars, how much are they worth?

73K could be insurmountable debt or it could be manageable. It all depends on your situation and circumstances and how much you are willing to sacrifice.

[Scanner]

Agree with Maat on the general advice. . .agree with DisneySteve on needing more specifics.

I wouldn't pursue bankruptcy at this time and I don't think negotiating with the c/c co.'s will work if you aren't close to bankruptcy. They paid for the stuff/experience, they want their money.

[Well Spent]

You have not given us enough info to decide whether $73k is hopeless or doable.

One thing that struck me though is your marriage. Do you want to stay married to this person? If so, would you consider marriage counselor? Does she go to counseling alone for her depression? Y ou need to get to the root of WHY she did this to both of you before you can determine whether your marriage and combined finances can be salvaged.

Good luck. Please understand I post this with respectfully.

[PrincessPerky]

My first question is hows your wife? No sense paying them off if she is still racking them up. find a legal way to prevent her from charging more, talk it over with her therapist. Even if you have found a treatment that works for now, things change, you need to make sure she cannot sink you into debt again (wouldn't hurt to put yourself on those hold lists either)

ditto the sell what you can, but don't cut so far down that you push yourself into depression along with the wife!

If you love her, it is worth it to stick with her, but it wont be easy, and she cannot explain why, that would be like explaining why you got a cold, sure some things factor into getting sick (failure to wash hands, not enough sleep), but there is only one real cause and most folk don't know just when the cold virus overcame their own immune system. Same with depression, many things can contribute to it, but there is no one thing to explain it all.

[DebbieL]

Well, you are a bigger person than me. If my spouse did that I'd blow a gasket, and likely divorce. I agree with the others, it is hard to know what you should do without knowing more specific income information. I'm sorry that you had to come home to such a lousy situation.

[debtfreecb]

Hi -

Hang in there. I was in the same situation 1 year ago - I was $72,000 in debt b/w cc and a home equity. I managed to pay it down $7,000 this year, build up a $1500 EF AND put the final coat on my driveway at a cost of $3600.00. I shell out roughly $1500 a month to pay down the debt. My journey is slow and some days I don't think I'll ever get it paid off but I will. Try reading one of Dave Ramsay's books re: the Snowball method. Ramsey is inspirational.

I am 41 years old with 2 young children so I can attest to the challenge of getting by and paying down debt - it takes discipline and lots of TIME.

Thanks for sharing your story because it makes me feel more "human" and remember that I am not alone.

Good luck.

[jIM_Ohio]

List all debts like this

cc name interest rate balance due credit limit monthly payment

and repeat for each card and debt

then sort by interest rate (higher rates listed first, lower rates at bottom)


Then create a budget to live off of and determine how much you can afford to send each month to debt.

then look at monthly minimums- add these up
look for simple cash flow solutions-if you can free one minimum up by paying off card in one month, do it. Otherwise pay debts- highest rate first to lowest rate last.

If you have room on cards, transfer balances so you can reduce your minimum monthly payment.

[TigerFan06]

Hi -

Hang in there. I was in the same situation 1 year ago - I was $72,000 in debt b/w cc and a home equity. I managed to pay it down $7,000 this year, build up a $1500 EF AND put the final coat on my driveway at a cost of $3600.00. I shell out roughly $1500 a month to pay down the debt. My journey is slow and some days I don't think I'll ever get it paid off but I will. Try reading one of Dave Ramsay's books re: the Snowball method. Ramsey is inspirational.

I am 41 years old with 2 young children so I can attest to the challenge of getting by and paying down debt - it takes discipline and lots of TIME.

Thanks for sharing your story because it makes me feel more "human" and remember that I am not alone.

Good luck.

Congrats on the great success, debtfreecb. I'm doing the Ramsey snowball method. Started in April and I'm seeing some success, so I'll vouch for it!