What should I do?

[today]

..

First, I am always impressed when people actually have retirement accounts. Thats a relatively new concept in human evolution, mostly American. SAVE SAVE SAVE because we hate our jobs. HAHA

Ok, how did you get a mortgage with 120K in student debt? Tell me how you did it!

[docstudent]

I went the FHA' route, and some would deem it as the worst thing to do.
Though, I live in a high market area, and it was my only approach to securing a condo. Fast forward to the present day, and things have worked out for the most part. My credit is rated at excellent, I have about $120,000 in available credit, and I owe about $8500 or so in credit card debt. My job is VERY stable, and on a worst cast basis, I make 77G a year, but it's typically 85G per year. On the upside my mortgage plus HOA payment will drop to $1350 in four years, so in the long run, it made sense and worked for me. The average rent in my neighborhood ranges from $1400 to $2500 per month. As I noted earlier, I will start a new job on July 1, and my income will shot up to 90G+. The new job will allow me to pay down on my student loan, and continue to pay down my mortgage. Plus my gf is a physician...that makes things a lil better. My situation is not ideal...I always find a way to make extra money on the side w/ the new job...I can relax and focus on marriage, plus family.

[~bs]

how big of a tax refund do you get yearly? seems like something is off with your numbers or youre getting huge tax refunds.

You gross $6475/ month
less 500 ss/med
less 400 403b
less 167 aflac
less 150 cu

equals 5250

That's $1544 difference from your claimed "take home pay". You're telling me you pay $1544 in taxes per month on a 77k salary AND you itemize your tax return? That's 23% for combined fed/state taxes. Assuming your deductions (itemized + 401k) will drop your taxable income down to $55k or so, you'll owe 10k in fed taxes, assume 7% state tax rate, that's 3.8k, which is a $4,728 difference between what you owe and what you withhold for taxes.

[docstudent]

To date, I gross $6050 per month and my take home is about $3714'ish. This is after my $400 per month 403b, which totals $4800 per year. As you know, it decreases my yearly income. The $167 and $150 are after tax deductions. Plus, I deduct $12,000 a year on interest per my mortgage, so I get about $5,000 or do back, and I don't owe any taxes. However, I refinanced, and I'll pay $6000 or so in interest..as a result, I will deduct and extra $4000 in my 403b to make up for the difference.

[docstudent]

I don't pay into SS

[~bs]

think you're withholding way too much in taxes, you should adjust your withholdings so you net around $0 on your tax return. That will free up an additional $400 or so a month to go towards your loans. Might feel nice to get such a large refund, but you're giving the govt an interest free loan + building up your balance on your debts when you could have been paying them down instead.

[docstudent]

Thanks. I will talk to my payroll specialist, and make the adjustments. I should be on track to pay off my creditor card bills and that will free up additional funds.

[bruceingram1958]

I would like to add another tip regarding insurance. Try to shop around for auto and homeowners' insurance. Before renewing your existing policies each year, try to see the rates of competing companies. You can search this on the website of your state insurance department. Their annual premiums may well be several hundred dollars lower.

[Frugal Guru Jenny]

You bring home $45k per year--after adjusting your withholding rate, a bit more--and have $135k in debt on top of your mortgage and your car.

You are living very far beyond your means.

Switch to a $20-a-month gym, stop taking vacations so long as you have any car and credit card debt (the student loans will take a very long time to pay off), and restrict your food bill to $150 a month. That will free up probably $400 per month.

You really shouldn't have a smartphone when you are that far in the hole, but I'm betting breaking the contract will be too expensive.

Leave your savings alone ($10k there is a cushion) and use $600 over your current payments to kill your consumer debt, along with every penny that is currently in your vacation account. You should be able to kick the $3300 down in about 7 months, depending on the interest rate, and then you will have about $750 toward the $800 a month you'll owe for the student loans, at least.

Any money you get from adjusting your withholdings should also be used toward your debt.

You should seriously consider trading down with the car. It is too expensive for you. For that matter, your house is at the edge of being to expensive for you WITHOUT your loans--with the HOA dues, you're at 28% gross.

You've been living a lifestyle financed by your student loan payments being deferred, so you need some major lifestyle readjustments to live within your actual means.

[Frugal Guru Jenny]

I forgot to add my life insurance expense, $33 per month for $500,000. Of course gas, I'm paying about $9 a month, barbershop, $60 a month. I have not made a single credit card charge in over two years.

You're single. Ditch the life insurance.

[Frugal Guru Jenny]

I meant $90 on gas, plus I pay an extra $130 on my mortgage.

Do not pay more on your mortgage. Use that for your other debts. Mortgage is what you pay down when ALL other debts are gone!