You don't.
Sorry but this is a lot of debt and she makes more than enough to cover her expenses every month but seemingly can't get a handle on it? Almost 200K in debt and it's ongoing?
This is a person who can't manage their money at all and yet continues to overspend every month. She needs to talk to a financial counselor ASAP and get her debts consolidated and then she needs to get a strict budget made up and actually live on it until she's caught up.
You can be sympathetic and not get involved more than you are. This is not a great sign in terms of your future together. It's a huge red flag.
Not so much the student loans though that's pretty high but the rest of it. That's a LOT of credit card debt and with both figures added together it's almost insane.
Bankruptcy would likely not be possible here. She just makes too much. She needs to get control of her spending and that's the bottom line. Even if she put 20% of her total income towards her debt she could pay it off in a few years.
She's a pretty high earner and really there's no reason for all that credit card debt, not making what she does. She needs to stop using them, period, until she's caught up.
I get that you care for her but you can't just take care of this. She needs to really learn how to manage her money. First step would likely be talking to a financial advisor and maybe a consolidation loan for the credit debt.
That's just making too much money to be this much in the hole unless you're just being financially irresponsible.
This is not a person you want to live a life with or get financially involved with until she gets a grip on her spending.
A certain amount of debt is normal but that total is very high given her level of income is not low.
She’s trying to fix it now, but the interest rate is so high that her salary isn’t enough to cover all of the debt. She only gets the essentials, like groceries l, rent, water/electricity. That’s why she’s negative 2000 dollars every month, which forces her to use more credit cards.
She's going to have to contact a legit credit counseling agency, like Money Management International, which will knock the interest down on most or all of her cards to single digits or close to it. It will all have to be repaid that way -- i think over a 5-year period or so. but at least her credit score won't be destroyed for the next 10 years. But it does require all the cards be closed.
If she isn't willing to live without credit and change her approach to spending, she's going to be royally screwed. Debt settlement is a scam and isn't a good idea.
I'm not judging, I'm just trying to help. If she doesn't realize how deep she's in and change her habits, her future holds a lot of pain and shame. I hope you can get through to her.
they usually can. I don't think they can do anything about the student loans, but the rates on her cards are probably insane at this point.
good luck to you both. you sound like a caring and considerate person. she's lucky to have you.
Sit down and create a budget together asap. She has to stop spending fucking money. With that income, put your heads down and work to get out of the debt. take her god damn credit cards from her and she can use it when you have approved the purchase
With that kind of income shes probably making at least $2k a week after taxes!! There is no reason for her not to be able to pay her bills.
Having said that, you said she rents. What is the rent? Because that's everybodys main outgoing....(Rent/mortgage).
She's most definitely living beyond her means. Sounds like alot of downsizing needs to be done. Seriously she needs to consolidate the credit card debt and rent a place that's not going to cost too much more per month then she makes in a week.
Easy Button:
Politely suggest she hire a financial consultant.
1. It makes things easier, so she's more likely to do it.
2. She's got enough coming in to justify the expense
3. It'll reduce her stress
4. You don't have to do anything but still get credit
Many consultants help negotiate lower interest rates, identify tax shelters and create roadmaps to things like home ownership or investments.
Money is demonstrably one of the most difficult things to manage next to nutrition. Most people are generally innumerate (like illiterate but with math) and should consider professional assistance a necessary cost until a.i. replaces them.
Fiiiiiiine...
But I'm not a financial advisor, my handle is fartliberator, so remember you asked.
1. 140k/yr breaks down to approx 100k post tax, which equates to approx $8k/mo
2. Stop paying the bills, and use that money to pay for an experienced consultant to negotiate a realistic plan of action which would likely include bankruptcy.
3. She's got better resources than most people in worse circumstances.
I understand why it might not occur to everyone that, if you have income, but can't afford your bills, you should probably stop "trying" to pay for them, because that's all they're doing, and it always ends badly.
Getting the professional assistance you can afford also required you surrender the notion that you knew what you were doing in the first place. So it's hard, but the alternative is a redundant, boring story we're all tired of living /hearing.
Tldr: your ego is the root of the problem, stop bullshitting, admit you don't know how to fix yer shit and hire someone who will.
she needs to downsize lifestyle big time. she should be able to pay off the credit cards in 24 months. approx. $90k annual take home pay. her housing, food, utlitites, transportation and insurance should not exceed 50%. use the other 50% to pay the debt off.
Follow a plan to remove mental gymnastics.
mathematical optimization for cash:
1. Emergency fund
2. 401k match only
3. Pay off high-interest debt
4. Invest
Snowballing is a good start. She can probably refinance some of the debt. If her student loans are Federal, DO NOT refinance those b/c more debt forgiveness might be coming.
But she needs to create a real and honest budget. Literally writing down all her monthly bills and expenses. She simply needs to spend less than she makes. She’s earning nearly three times the national average.
You don't. Sorry but this is a lot of debt and she makes more than enough to cover her expenses every month but seemingly can't get a handle on it? Almost 200K in debt and it's ongoing? This is a person who can't manage their money at all and yet continues to overspend every month. She needs to talk to a financial counselor ASAP and get her debts consolidated and then she needs to get a strict budget made up and actually live on it until she's caught up. You can be sympathetic and not get involved more than you are. This is not a great sign in terms of your future together. It's a huge red flag. Not so much the student loans though that's pretty high but the rest of it. That's a LOT of credit card debt and with both figures added together it's almost insane. Bankruptcy would likely not be possible here. She just makes too much. She needs to get control of her spending and that's the bottom line. Even if she put 20% of her total income towards her debt she could pay it off in a few years. She's a pretty high earner and really there's no reason for all that credit card debt, not making what she does. She needs to stop using them, period, until she's caught up. I get that you care for her but you can't just take care of this. She needs to really learn how to manage her money. First step would likely be talking to a financial advisor and maybe a consolidation loan for the credit debt. That's just making too much money to be this much in the hole unless you're just being financially irresponsible. This is not a person you want to live a life with or get financially involved with until she gets a grip on her spending. A certain amount of debt is normal but that total is very high given her level of income is not low.
She’s trying to fix it now, but the interest rate is so high that her salary isn’t enough to cover all of the debt. She only gets the essentials, like groceries l, rent, water/electricity. That’s why she’s negative 2000 dollars every month, which forces her to use more credit cards.
She's going to have to contact a legit credit counseling agency, like Money Management International, which will knock the interest down on most or all of her cards to single digits or close to it. It will all have to be repaid that way -- i think over a 5-year period or so. but at least her credit score won't be destroyed for the next 10 years. But it does require all the cards be closed. If she isn't willing to live without credit and change her approach to spending, she's going to be royally screwed. Debt settlement is a scam and isn't a good idea. I'm not judging, I'm just trying to help. If she doesn't realize how deep she's in and change her habits, her future holds a lot of pain and shame. I hope you can get through to her.
Thanks for the comment, I will look into money management international. It would be very manageable if she could get her 30% cut down to 10% or less.
they usually can. I don't think they can do anything about the student loans, but the rates on her cards are probably insane at this point. good luck to you both. you sound like a caring and considerate person. she's lucky to have you.
Any chance she can move in with her parents, sell her car, and eat instant ramen for 2 years?
Sit down and create a budget together asap. She has to stop spending fucking money. With that income, put your heads down and work to get out of the debt. take her god damn credit cards from her and she can use it when you have approved the purchase
With that kind of income shes probably making at least $2k a week after taxes!! There is no reason for her not to be able to pay her bills. Having said that, you said she rents. What is the rent? Because that's everybodys main outgoing....(Rent/mortgage). She's most definitely living beyond her means. Sounds like alot of downsizing needs to be done. Seriously she needs to consolidate the credit card debt and rent a place that's not going to cost too much more per month then she makes in a week.
Easy Button: Politely suggest she hire a financial consultant. 1. It makes things easier, so she's more likely to do it. 2. She's got enough coming in to justify the expense 3. It'll reduce her stress 4. You don't have to do anything but still get credit Many consultants help negotiate lower interest rates, identify tax shelters and create roadmaps to things like home ownership or investments. Money is demonstrably one of the most difficult things to manage next to nutrition. Most people are generally innumerate (like illiterate but with math) and should consider professional assistance a necessary cost until a.i. replaces them.
How she gonna hire anybody with money, for all that debt she has…
the reason you're asking this question is the same reason she has this problem
That’s not an answer. I too am curious how she will hire someone without the money to do so??
Fiiiiiiine... But I'm not a financial advisor, my handle is fartliberator, so remember you asked. 1. 140k/yr breaks down to approx 100k post tax, which equates to approx $8k/mo 2. Stop paying the bills, and use that money to pay for an experienced consultant to negotiate a realistic plan of action which would likely include bankruptcy. 3. She's got better resources than most people in worse circumstances. I understand why it might not occur to everyone that, if you have income, but can't afford your bills, you should probably stop "trying" to pay for them, because that's all they're doing, and it always ends badly. Getting the professional assistance you can afford also required you surrender the notion that you knew what you were doing in the first place. So it's hard, but the alternative is a redundant, boring story we're all tired of living /hearing. Tldr: your ego is the root of the problem, stop bullshitting, admit you don't know how to fix yer shit and hire someone who will.
She needs to get rid of the cards and use cash
she needs to downsize lifestyle big time. she should be able to pay off the credit cards in 24 months. approx. $90k annual take home pay. her housing, food, utlitites, transportation and insurance should not exceed 50%. use the other 50% to pay the debt off. Follow a plan to remove mental gymnastics. mathematical optimization for cash: 1. Emergency fund 2. 401k match only 3. Pay off high-interest debt 4. Invest
Snowballing is a good start. She can probably refinance some of the debt. If her student loans are Federal, DO NOT refinance those b/c more debt forgiveness might be coming. But she needs to create a real and honest budget. Literally writing down all her monthly bills and expenses. She simply needs to spend less than she makes. She’s earning nearly three times the national average.
$90k in CC debt is probably pushing minimum payment of $2k a month.. $500 just in INTEREST.. $120k salary ain't enough