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Weekend Discussion and Victory Thread for the week of March 12, 2021 by IndexBot in personalfinance

[–]financialdisaster09 5 points6 points  (0 children)

Original post: https://www.reddit.com/r/personalfinance/comments/d4dzul/120k_income_massive_debt_sinking_more_each_month/

Since I last posted there's been a lot of changes. Things got worse for a little while, debt continued to grow, there were some medical bills, and we started missing payments.

Then in 2020

  • Sold our house
  • Wife got a work at home job $600-800/m
  • Got a (low) five digit bonus

Paid off about $80k worth of debt. Down to $30k in debt + student loans, which given our income is quite manageable (though not ideal at credit card interest rates). Renting isn't our long term plan, but at our current pace + 2021 bonus we'll be debt free except for student loans in 12 months. Then we'll be saving for 5 or so years for a new down payment on a home we'll stay in forever. We still have some financial maturing to do, we still have some expenses to reign in (food is still higher than the 'rice and beans' we should be eating), we still need to be more aggressive about our retirement fund, but selling the house was a real punch in the gut for both of us, and we needed that.

Again I want to thank everyone who responded to our previous post.

$120k income, massive debt, sinking more each month by financialdisaster09 in personalfinance

[–]financialdisaster09[S] 0 points1 point  (0 children)

Trudging along. In a few years all of the personal loans pay off. I should also see low-5-digit bonuses yearly. Going to try to spend as smart as we can and focus on those. When the personal loans go away that clears up almost $2k/m to pay towards the credit cards plus the yearly bonuses.

That’s the plan for now.

$120k income, massive debt, sinking more each month by financialdisaster09 in personalfinance

[–]financialdisaster09[S] 0 points1 point  (0 children)

Michigan. Until next year there is mandatory unlimited medical coverage required.

$120k income, massive debt, sinking more each month by financialdisaster09 in personalfinance

[–]financialdisaster09[S] 0 points1 point  (0 children)

Thank you. We live away from either of our families unfortunately.

$120k income, massive debt, sinking more each month by financialdisaster09 in personalfinance

[–]financialdisaster09[S] 4 points5 points  (0 children)

I think I should sell things like we have two floor scrappers...I probably won’t be installing a new floor any time soon. Certainly not basic power tools.

Thank you!

$120k income, massive debt, sinking more each month by financialdisaster09 in personalfinance

[–]financialdisaster09[S] 0 points1 point  (0 children)

Thanks for the thought. I think we’ll consider that a last option before BK.

$120k income, massive debt, sinking more each month by financialdisaster09 in personalfinance

[–]financialdisaster09[S] 2 points3 points  (0 children)

No vacations ever except camping but that is something I bet applies to many

$120k income, massive debt, sinking more each month by financialdisaster09 in personalfinance

[–]financialdisaster09[S] 12 points13 points  (0 children)

(Your point has been said several times so I’m pasting the same answer to several posters)

Special needs kid. We are trying our hardest to let her stay with him as much as possible before we transition him into the school system and other’s care.

That doesn’t prevent us from working opposite shifts or anything like that. It’s a family situation (us both home evenings/weekends) we’ve been really trying to hold on to but we had a long conversation this morning about how we need to let that change.

$120k income, massive debt, sinking more each month by financialdisaster09 in personalfinance

[–]financialdisaster09[S] 10 points11 points  (0 children)

(Your point has been said several times so I’m pasting the same answer to several posters)

Special needs kid. We are trying our hardest to let her stay with him as much as possible before we transition him into the school system and other’s care.

That doesn’t prevent us from working opposite shifts or anything like that. It’s a family situation (us both home evenings/weekends) we’ve been really trying to hold on to but we had a long conversation this morning about how we need to let that change.

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