Huge Debt For Doc
Irma and her husband make great money, but owe tons more. And that's not the worst of their problems.
QUESTION: Irma and her husband have $300,000 in debt, not including the house. They have student loan debt for $175,000, the rest being credit lines and credit cards. He makes $200,000 a year but they are broke. He was relieved to hear that she had Dave’s plan, because he was relying on her to clean up this mess for them.
ANSWER: He has to handle this. You’re his wife, not his mother. Get rid of your van lease by calling and asking what the early buyout is. Then get yourself a very cheap van. You guys have absolutely no lifestyle for the next 2 or 3 years. You have to make $200,000 and live off $40,000 or so in order to put serious money on this debt and get rid of it. You guys have to get your budget out together and work it out together. Pour over that budget every month for the next 3 years. You’ll live on nothing and you can begin to whittle this away. You’ve got ridiculous debt but a great income. You have a huge mess that you’ll spend a decade cleaning it up unless you get gazelle intense.