HELP!I'm pouring my heart out here, need advice!*Updated 6/12/07*

[dvcgirl]

I would quit paying $10 extra on a bunch of cards. Pay the minimum on five cards and ALL the extra on one card. That way you will actually SEE a difference which will motivate you. Figure out what would motivate you. For me it would be paying one off so I would pick the small balance and apply all extra funds towards that. At $10 to $15 a card you are going to feel like you are never going to get anywhere!

The OP may have to pay *more* not less on *all* of those cards depending on whether or not her CC companies have increased her minimum payments yet. And judging by her numbers, I'm thinking that they haven't hit her yet. She originally said that she had 22,500 in CC debt, with the 2% minimum that would be $450 a month. Her current minimums are $675....the extra $225 could account for interest. And so, the OP (and I hope you're on the phone already with your CC companies to see if I'm right and what you can do about it!!), could potentially see her minimum CC payments increase dramatically in the coming months. From 2 to potentially 4%...which would increase her minimum to $1,350 and place her family roughly $500 in the hole each month....pre-Disney trip....

A whole lot of people are going to be hit in the coming months. Retailers are already referring to the coming shopping season as Black Christmas.

 

[dvcgirl]

Magic, it sounds like you've put yourself on the right path!! I've been following this thread and you're right, a lot of what's been said has been harsh (the usual suspects ) but it's great that you've been able to garner helpful info from each one.

I also don't think you should have to justify your family trip. There is nothing wrong with seriously working on your debt and still continuing to live your life. We are also taking a trip (5 nights -- driving down) at the end of this month, even though my dh is technically underemployed. We've had the cash saved up for a year (cancelled a trip earlier this year when finances were more uncertain) and since our accommodations are paid for (DVC), we already had passes purchased, and we have enough $$ in Disney Rewards to pay for all of our food, we're going! My poor dh has been working 7 days a week and he begged me for this trip. No WAY am I turning him down. He's more excited than ds and I are! And we, too, will be on a set budget while we're there. As you said, the small amount of money spent won't be enough to make a difference in our budget.

We're proof that you can work on your debt/savings even in difficult situations, and continue to live your life. God has blessed us with work to keep us afloat, and we actually have more in the bank than we ever had, even when we were both working full-time. You just have to set your priorities, and not waver.

Good luck with your journey; I hope you'll keep us posted!

As one of the "usual suspects" I will agree with you on this point. You are right, absolutely nobody should have to justify their family trip. They just need to be able to pay for it.

Some people can pay down debt and continue to take an occasional (cheap/short/frugal) vacation. It's like being on a diet and allowing yourself a slice of pizza once a week to help you stay on track. That doesn't mean that same person should be lining up a three-times a day all you can eat buffet...which is the equivalent of someone who is 30K in CC debt going on yearly Disney vacations. To think otherwise is delusional...

People in our country need to wake up. Tougher bankruptcy laws, higher minimums on credit cards, rising gas prices, inflation on the rise......the party is over.

 

[disneymom3]

My main question is what is happening to all of your income before it gets to you? YOu are bringing in barely more than my DH and he makes almost half of what you stated you and your DH make. We have health ins and 401K taken out of there. Not as much as is our goal, but we are working on that.

Where is your money going before it comes home? If it's going into retirement, that can seem wise, but be foolish. If you took some of that as take home pay and paid it directly to your credit card debt you would save more over the long run than what you can possibly be earning. You would also reduce your stress load significantly.

As for our country's attitude toward credit card debt--I was at the mechanic the other day and they tried to tell me some routine maintenance needs to be done on my car, which I don't think I should have to do for another 30,000 miles. The guy brings out this credit application and is trying to tell me that they have a 90 day same as cash set up. I said, "We don't believe in credit." He was SHOCKED! Tried to tell me there is no interest etc, and I just said it was not for us. We got into some financial trouble some time back and I am not at a point where I will trust us with credit. Some day we will be able to go back to using those 0% appliance financing types of things but for now, it has to be no. And NO is the word I think is the one that all of us who have had problems or currently have problems need to work on. Now, we had much more issues than impulse shopping that lead to the trouble, but looking back I can see many things that I could have and should have done differently.

Kudos to the OP for tackling the problem and being open to suggestion.

 

[MAGICX2]

Magicx2,

First of all...I know that I'm one of the harsh ones around here. And I apologize if I come across that way, but unnecessary CC debt is a hot button issue for me. I have extended family members and friends who have filed for bankruptcy unnecessarily, and a few made more than you and your DH do. I definitely see a light at the end of the tunnel for you....why? Because you are young, and hopefully you're beginning to see the light. Secondly, you are both educated and have nice jobs. So, your income is going to increase, and all of that good stuff.

First, I want to ask one thing. You're paying around $775 a month to all of your CC accounts, roughly $100 over the minimum combined. Have you noticed a big jump in your CC minimums lately? If not, you're in for an unexpected nasty surprise. Many CC companies are about to double their minimum payment amounts from 2% to 4%, and so it's not out of the realm of financial reality here for you to see your CC payments go from $675 a month to $1350 a month. That's a big jump and if you can't handle it you need to get on the phone with your CC companies ASAP to try and negotiate a regular payment amount that is slightly less than that. Hopefully they'll work with you.

For the life of me I don't know how so many families around here feed a family of four (even with little ones) on $300 a month. Are you sure that number is correct?

You say your electric bill is $150 a month. Do you have gas or electric heat? Regardless, all home heating bills are going to increase this year to some degree. I'd increase that number.

You said that your gross income is 102k a year and yet you're only bringing home $57,660? Are you putting some away for retirement (hopefully), or do you get a big fat check from the IRS each year (which you in turn use to vacation)? Your budget has literally zero room for error. You have $100 left each month, and I think some of your numbers sound low to begin with. How are you going to buy clothes for your kids? Birthday gifts, christmas presents. Oil changes, hair cuts, doctor co-pay, clothes for you and DH? You are someone who has over $30,000 in revolving debt and you get by on $100 a month in discretionary spending? I think that you're being overly optimistic.

I agree with others who have said that you definitely can't afford to move, now that I see what you've written here....I know that you can't. You are hanging by a thread with the 1,500 sq foot house. If you are getting a lot of the excess income back in the form of an IRS return, I'd rearrange your deductions so that you'll be closer to breaking even each year. Begin to work on an emergency cash fund of at least $1,000. And I know you don't want to hear it, but you really and truly can't afford to vacation at Disney World until you get rid of the CC debt and that signature loan. No way, no how.

Once you get rid of that debt, and only then can you truly afford to take the kinds of vacations that you are taking. I think it's great that you've posted your numbers. I think it's great to have an anonymous board like this where you'll hear the real truth (even if it sounds harsh). I think many people in your situation just sort of trudge along like this thinking "hey, we're making great money, if everyone else can afford this stuff...so can we." But you can't. Really and truly you can't. I read your numbers and shuddered. There's no room for a misstep. Not even an inch. If you're lucky, you'll pay down all of that debt and get serious about retirement and college savings for your kids in the next 5 years or so. But you've got quite a hole to dig out of, and it will take a total life change for quite a few years in order to turn things around. Good luck to you!

After I posted I realized how stupid my cc payments looked. I should be paying the min on all but one and putting that extra on the lowest balance.
As for our take home pay, my husband and I both have 10% coming out each pay check for our retirement. I also have monies coming out for a flexible health spending account and for our medical/dental insurance. The take home pay is after all of this. Your right, I don't have anything budgeted for Christmas, clothes, hair-cuts etc. Three of the cc's have already upped the min. payment. The others are soon to follow I am sure. We are treading thin ice and that is why I came here. I knew what had to be done, somewhat. I needed more advice, more encouragement and some swift kicks in the patoot!
I will drag out our income tax stuff from last year and take a look. I got the 102k figure from adding my husband's base salary to my base salary.

 

[Lyn5]

First, good luck on starting your new financial life and I think there was been a lot of helpful advice given to you. Second, I agree that your budget is too optimistic. It seems to me you need to start selling some stuff and get your snowball rolling and get a little more breathing room in your budget. My advice is that your new activity for the next few weekends could be to clean/organize your home one room at a time. With this you will #1 find stuff that you could sell, #2 make your home more livable by taking out the clutter and #3 you will find stuff you didn't know you had....sort of like shopping in your own home .

I do this all the time and my kids enjoy it too. We always find toys and stuff that I put in the closet until they were older or sometimes things get stuffed in the back and you forget you had them. My sisters will clean out their kids stuff and give me their DDs and DS clothes since they are older than my DD and DS, then when I am done I give my children's things that they have outgrown/don't use to our loving babysitter and her grandchildren . Kids outgrow things so fast, if your buying your children expensive clothing, I would cut that too.

 

[sk!mom]

The other big problem today is people buying "more house" and "more car" than they can afford. I know people who could comfortably afford a nice little nothing-fancy 3-bedroom house, but instead they live in a McMansion and wonder why they're living paycheck to paycheck! It's the same thought process as the credit card problem.

That is so true. Last year a family member with two employed adults, two new cars with payments, and only two children decided that they "needed" a larger house. NOw the house they were living in was larger than our home. They bought a 3500 sq. ft. house with about an acre of land. Then they called DH and asked to borrow their closing costs. He refused.

To the OP, you can do this if you're serious. Apply the child care savings to your debt. Pay that and all the exta to the highest interest balance and pay them off one by one. COnsider cutting the cost of or totally eliminating your cell phone, home phone, cable, etc... Get basic phone service and basic cable. I would cancel the trips. That money could be used to pay off one of your low balance cards. WDW will be there in a year and you will be in much better financial shape then. Setting the goal of paying off all the consumer debt before you go to WDW could be just the incentive that you need.

 

[tar heel]

Is the 10% retirement fund contribution required? How much of it is maxed by the company? Unless 10% is required, I would drop down to the amount that is maxed until you're in a better financial position. With your budget so tight, it will be hard to avoid future credit card debt when you have a broken car or a child needs new shoes.

Is there anything your DH can do temporarily to make extra $? Since you're in the medical field, could you do a couple of weekend shifts a month? I'm not talking about forever -- family time is too precious for that -- but I mean until you've got a little bit of an emergency cushion.

 

[minnie1928]

As for our take home pay, my husband and I both have 10% coming out each pay check for our retirement. I also have monies coming out for a flexible health spending account and for our medical/dental insurance.

How about temporarily scaling back your 401k? I'm guessing that your employer has some type of match? Scale back to the minimum contribution that still qualifies you for the match. See how that helps, if it doesn't help enough...then stop it all together for the time being. While I know that's not the optimum thing to do, it may help you get past this point and in X number of months you can jump back in and eventually go past your current 10% contribution.

The flexible spending accounts are GREAT! Take a look at them closely next year...should you be putting more in the accounts? Also, does your work offer them for daycare as well as medical? Mine offers up to $5,000/yr, I'm assuming this is tied to some IRS limit. If so, definately look into doing the flexible daycare. If you go to the IRS website, you can probably determine what your tax savings would be by running daycare through a flex account compared to deducting it on your taxes.

I hope you are feeling better! I read your game plan and it really sounds like you've got some great momentum, keep it going and you'll do just fine!

 

[goodeats]

Yes definitely do the 'snowball' approach with the debt. Also, I would set up a $1,000 or so 'emergency fund' so if something happens you don't end up back where you started. I don't blindly follow Dave Ramsey, but I believe this advice is good.

And I personally would get rid of cable, internet, and landline phone. But that's just me. If you're really serious about this debt you'll probably get to that point. That would be another $130 a month to put towards your debt. You got into this mess by spending too much, the only way out of it is to make some sacrifices.

 

[dvcgirl]

After I posted I realized how stupid my cc payments looked. I should be paying the min on all but one and putting that extra on the lowest balance.
As for our take home pay, my husband and I both have 10% coming out each pay check for our retirement. I also have monies coming out for a flexible health spending account and for our medical/dental insurance. The take home pay is after all of this. Your right, I don't have anything budgeted for Christmas, clothes, hair-cuts etc. Three of the cc's have already upped the min. payment. The others are soon to follow I am sure. We are treading thin ice and that is why I came here. I knew what had to be done, somewhat. I needed more advice, more encouragement and some swift kicks in the patoot!
I will drag out our income tax stuff from last year and take a look. I got the 102k figure from adding my husband's base salary to my base salary.

Okay, well your take-home pay makes more sense to me now that I see that you're putting 20% of your pre-tax income 401ks (I'm guessing). That takes you down to 81,600. And then some out for health care....which is probably taking you down to somewhere in the 27-28% tax bracket. Which sounds about correct.

I'm wondering if you shouldn't cut back on those 401K a bit... Do you know if your employers match any of your contribution? I would speak with a financial advisor on this, but if I was in your shoes, I'd contribute up until the point at which your employers match. And then I'd use the rest of that income (even though it will be taxed) to pay accelerate your debt pay-off plan. Of course, you *must* use that extra money to pay down that debt and not for extras.

And as for the CC minimums going up...was it the larger balances that increased or the smaller ones. I'm concerned for you that you're going to be in over your head very quickly here. Also, someone (Mrs Pete I believe) mentioned PMI. Do you think you have 20% equity in your home...if so perhaps you can get an appraisal and drop it.

Now, I know everyone (or a few sensitive people here) think I'm harsh. And I can come across that way, however, I'm really quite a nice person

I'm also (along with my DH and many of the posters on the budget board) fairly savvy fiancially. What I see coming for you is a train wreck unless you make some drastic changes in your spending. Many people your age have a tight budget because of daycare expenses and a new mortage. And some of them have some CC debt, but you are carrying 3 to 4 times what the average American family carries in CC debt.....which is 8 to 10 thousand dollars of revolving debt, depending on who you believe. You've gotten yourselves into 30K of debt, and yet you are leaving yourselves with $100 a month in extra spending. That's called setting yourself up for failure.

Along with a few others here, I'm a fiscal conservative. Does this mean that we have no fun? Of course not, we have a blast. Does it mean that we don't like the finer things/experiences in life. Of course not, we most certainly do. I can not even begin to express to you how much more you will enjoy those Disney trips when you can really afford them. There is no way to explain to you how great it is to be able to afford a bigger house, a nicer car, a more luxurious vacation.....and then not taking it.....because you don't *need* it to be happy. This is what I hope for you.

And so, I can see very clearly that you aren't giving up those Disney trips. Okay...I hear that. So, instead of every year...try every other year, or ideally, every third year. Cut that 30K number in half and then treat yourselves to a vacation. That's how I'd treat it. And when you go, don't look to stay at the Beach Club...even with that AP rate (which is *still* too much for you). Look for the AP rate at the All Stars. Even more ideal, go in September and rent DVC points...and eat breakfast and lunch in the room. You'll save a fortune doing that alone.

You definitely have the means to do it....now you need to dig up the desire.

 

[sk!mom]

I can not even begin to express to you how much more you will enjoy those Disney trips when you can really afford them. There is no way to explain to you how great it is to be able to afford a bigger house, a nicer car, a more luxurious vacation.....and then not taking it.....because you don't *need* it to be happy. This is what I hope for you.

ITA!! You said it so well. What you describe is the philosophy that DH and I live by and the feeling is great.

 

[disneysteve]

I'm not going to quote anyone because there are a bunch of comments that I want to reply to.

To the OP, you are doing great and I'm sure this will all work out because you sound like you've got your head in the right place. Some suggestions: you mentioned that you live in a rural area so ditiching cable tv may not be an option (though a satellite dish may be cheaper). But call your cable company and see if they offer antenna service. Around here, we can get the absolute basic service which includes only the local stations and it is only $10/month.

As for how to pay off the CC's, I know there are a lot of Dave Ramsey devotees around here but keep in mind that from a financial standpoint (not a psychological one) snowballing doesn't make sense. The best way is to pay off the CC with the highest interest rate first, not the one with the highest balance. You will retire your debt quicker that way.

dvcgirl talked about what is different in society today compared to 20 or 30 years ago. CCs play a part but that really isn't the problem. The reality is that Americans enjoy a much higher standard of living today, on average, than they did a generation ago. Flying used to be a luxury. International travel was only for the wealthy. Fine dining was strictly for very special occasions. Today, all of those things are commonplace. Why? We earn more relative to the cost of those former luxuries which have gotten steadily cheaper. You can fly cross country today for under $100 if you catch a good special. That was unimaginable to our parents. We can go to WDW and rent a beautiful 2-bedroom condo for a week for under $300. "Luxuries" have become more and more affordable and we've all upgraded our expectations.

There is a great new book which I haven't posted about yet because I just started reading it, but it applies to the topic at hand. "Trading Up" by Neil Fiske. The author explains how common everyday folks have adopted certain luxury items into their daily lives because the items have become affordable to the masses. For example, years ago, folks who only drank Maxwell House coffee now wouldn't think of drinking anything but Starbucks. Folks who drove Chevys now drive entry level Mercedes. Folks who used to vacation at the local beach now take Caribbean cruises. My BIL and SIL just took a 9-day cruise for $599/person. Heck, it costs nearly that much to stay home.

But in the process of all this upscaling of our lives, we've forgotten how to distinguish wants from needs. We all used to be perfectly happy with 6 or 7 tv stations. Now, if you don't have at least 100 it just isn't good enough. We used to find our way by opening a map. Now you just have to have GPS installed in your car. We MUST HAVE cell phones just in case of an emergency. What did we do in the past when we had an emergency?

Ok, enough rambling. I think you get my point.

So again, to the OP, good luck. You sound like you are on the right track and have the right mindset to fix your past wrongs and go forward to a much more financially secure future.

 

[MrsPete]

Okay, well your take-home pay makes more sense to me now that I see that you're putting 20% of your pre-tax income 401ks (I'm guessing). That takes you down to 81,600. .

No, they're putting 10% of their salary into 401Ks. 10% of his plus 10% of hers equals 10% of their total salary. 10% of 102K (is that combined salary?) is a tad more than 10K, so their taxable salary is around 90K.

I'm wondering if you shouldn't cut back on those 401K a bit.

I believe in maxing out the 401Ks, but you can always borrow against them. If the original poster's been in the 401K for a while and has a decent amount, she could borrow "from herself" to get rid of those credit card bills. It wouldn't make the problems go away, but it would probably reduce the interest rate and would mean she'd be paying interest to herself (of course, it also means that the 401K will gain more slowly since there'd be less principle).

 

[crisi]

Steve, you are right. And there is the preponderance of modern "necessities." Cell phones. Cable TV. Broadband connections. Electronic doo-dads like digital cameras and mp3 players. Cheap TVs so now you can have one in every room. All so tempting, all so cheap -- it does seem like you should be able to afford it. And everyone seems to. I have friends who live rather frugally and don't make much money, but have traveled internationally - to Thailand, Greece, Italy and Mexico in the past few years. I have a teacher friend who drives a used Lexus on her teachers salary (thanks to her father who needed a new car and sold her the Lexus at a bargain price).

 

[dvcgirl]

I'm not going to quote anyone because there are a bunch of comments that I want to reply to.

To the OP, you are doing great and I'm sure this will all work out because you sound like you've got your head in the right place. Some suggestions: you mentioned that you live in a rural area so ditiching cable tv may not be an option (though a satellite dish may be cheaper). But call your cable company and see if they offer antenna service. Around here, we can get the absolute basic service which includes only the local stations and it is only $10/month.

As for how to pay off the CC's, I know there are a lot of Dave Ramsey devotees around here but keep in mind that from a financial standpoint (not a psychological one) snowballing doesn't make sense. The best way is to pay off the CC with the highest interest rate first, not the one with the highest balance. You will retire your debt quicker that way.

dvcgirl talked about what is different in society today compared to 20 or 30 years ago. CCs play a part but that really isn't the problem. The reality is that Americans enjoy a much higher standard of living today, on average, than they did a generation ago. Flying used to be a luxury. International travel was only for the wealthy. Fine dining was strictly for very special occasions. Today, all of those things are commonplace. Why? We earn more relative to the cost of those former luxuries which have gotten steadily cheaper. You can fly cross country today for under $100 if you catch a good special. That was unimaginable to our parents. We can go to WDW and rent a beautiful 2-bedroom condo for a week for under $300. "Luxuries" have become more and more affordable and we've all upgraded our expectations.

There is a great new book which I haven't posted about yet because I just started reading it, but it applies to the topic at hand. "Trading Up" by Neil Fiske. The author explains how common everyday folks have adopted certain luxury items into their daily lives because the items have become affordable to the masses. For example, years ago, folks who only drank Maxwell House coffee now wouldn't think of drinking anything but Starbucks. Folks who drove Chevys now drive entry level Mercedes. Folks who used to vacation at the local beach now take Caribbean cruises. My BIL and SIL just took a 9-day cruise for $599/person. Heck, it costs nearly that much to stay home.

But in the process of all this upscaling of our lives, we've forgotten how to distinguish wants from needs. We all used to be perfectly happy with 6 or 7 tv stations. Now, if you don't have at least 100 it just isn't good enough. We used to find our way by opening a map. Now you just have to have GPS installed in your car. We MUST HAVE cell phones just in case of an emergency. What did we do in the past when we had an emergency?

I agree with most of what you are saying. Yes, things have gotten cheaper. I just posted about a quick little four day cruise that my DH are taking...for $800 total. But guess how much the same cabin was on DCL for the same exact route? $1900. Sure, you can get a great condo off-site at Disney for $300 (this sounds low but I believe you), but it's still very expensive to stay on-site anywhere in the deluxe range, even with a big AP discount....especially for the OP in her situation. Disney cruises and staying on-site deluxe at Disney is expensive.

 

[RADOPT]

dvcgirl talked about what is different in society today compared to 20 or 30 years ago. CCs play a part but that really isn't the problem. The reality is that Americans enjoy a much higher standard of living today, on average, than they did a generation ago. Flying used to be a luxury. International travel was only for the wealthy. Fine dining was strictly for very special occasions. Today, all of those things are commonplace. Why? We earn more relative to the cost of those former luxuries which have gotten steadily cheaper. You can fly cross country today for under $100 if you catch a good special. That was unimaginable to our parents. We can go to WDW and rent a beautiful 2-bedroom condo for a week for under $300. "Luxuries" have become more and more affordable and we've all upgraded our expectations.
QUOTE]

There also was not as much to buy and more time to relax. Less quilt buying.


OP - if you have a cell, why is you phone bill so high? Can you get a cheaper internet provider or get rid of it for now? I have a cell I use for 99% of my call and my phone bill at home is less then $10 a month. Since my company has internet access and I work on the computer all day, I do not have it at home. Just a thought. Good luck.

I need to sit down and do a spend list like you posted.

 

[EthansMom]

Phone/Internet $ 80.00
Cell Phone $ 45.00
Cable $ 49.50

Here are three areas where you could probably save some money. Your phone/internet costs might be lowered. I use a calling card from Costco for long distance and pay less than 3 cents per minute. Also, get rid of any call waiting, voicemail and inside line maintenance charges.

Can you cancel one of the cell phones without paying any early termination fees? DH and I both have pre-paid cell phones that we use predominantly for emergency use and "hey honey.." calls. We don't use our cell phones for casual chatting.

Drop your cable down to basic-basic cable. My cable costs less than $15 per month and we get around 13 channels: ABC, NBC, CBS, Fox, WB, PBS... We pay an additional $15 to get 2 rentals at a time from Netflix.

You mention using shopping as a recreational activity. I've been guilty of that myself. Are there any Museums, Zoos or similar activities nearby? If so, you could get an annual family membership for around $100. Voila!, you have something to do on a Saturday or Sunday afternoon.

We've recently trimmed back on our eating out by replacing our Sat. trip to the restaurant with a family picnic outing to the park. We're saving money and the kids actually enjoy themselves more.

I agree with others that all extra money should be applied to the credit card with the highest interest rate. I'm not sure if anyone else has mentioned this, but often, you can get the interest rate on a credit card lowered just by calling the credit card company and requesting that they lower the rate. If possible, you may want to transfer the balance on credit cards with higher rates to credit cards with lower rates, also.

In the short term, it may be wise to lower yours and DH's 401k contributions to the maximum amount that is matched by your companies. For instance, if your company matches the first 6%, then reduce your contribution to 6%. You'll receive about 3% more in your paycheck which could be used to help pay off your debt. When you've got some of your debts paid off and your financial situation has improved, then you can increase your 401k contributions.

Good Luck!

 

[fac]

I believe in maxing out the 401Ks, but you can always borrow against them. If the original poster's been in the 401K for a while and has a decent amount, she could borrow "from herself" to get rid of those credit card bills. It wouldn't make the problems go away, but it would probably reduce the interest rate and would mean she'd be paying interest to herself (of course, it also means that the 401K will gain more slowly since there'd be less principle).

I had not looked into the subject of borrowing from 401K much. However, isn't it true that if the OP were to leave her job before she pays off the loan, she will either have to return the whole amount or be hit with a tax? My point is that, depends on her job, it may be a high risk.

Felicia

 

[ElizaB39]

I had not looked into the subject of borrowing from 401K much. However, isn't it true that if the OP were to leave her job before she pays off the loan, she will either have to return the whole amount or be hit with a tax? My point is that, depends on her job, it may be a high risk.

Felicia

oooops

 

[ElizaB39]

OP, Great Ideas here. In summary

Cut retirement contributions to what your employer matches. If employer doesn't match still cut.

Pay only the minimum on all but one card, pay the other $60-$80 on the card you are paying off first. Even Dave says on his radio show the reason for paying the smallest first is psycholigical. Numerically and financially you should pay the higest interest first. You choose.

Take all daycare and paydown first targeted credit card. Or use this to fund your $1000 emergency stash.

Cut cable, phone, Internet, cell put savings towards first credit card.

Take a deep breath. You can do it!