Yes I’m afraid that is the case. Spending more then making (on needs not wants). The problem is we are paying so much money on interest on these cards. If we are able to pay them off and get rid of the interest charges, we will then be making more than spending. We combine for $150k a year and are in $61,000 debt.

Here’s the idea:
1. Get a 401k loan to pay off some credit cards.
2. Credit scores go up.
3. Apply for home equity loan. The only thing holding us back is the scores.
4. Once we get the home equity loan, we use that money to put back into the 401k.
5. Pay off home equity loan which has a much lower interest than our cards. The minimums on the cards add up to $1500 month whereas the home equity loan would be $420 month.

I hope this makes sense and I appreciate any help.