My husband and I bought a restaurant in 2004. Long story short, it started out doing really well and then crashed with the economy. We sold it in 2010 but lost A LOT of money. My husband ended up with significant credit card debt ($40k) as a result and it took him 9 months to find a new job. I just graduated from nursing school (RN) in 2010 and was unable to get enough student loans throughout school to completely pay our living expenses (which aren't extravagant by any means) so I ended up with 20k credit card debt.
So, here's where we stand:
Combined income: About $77,000/year
Total credit card/line of credit debt: About $60,000 (me: $20k (8.9% interest), him: $40k (varying interest rates, mostly around 10%)
Total student loan debt: About $60,000 (all mine, from two B.S. degrees and one AAS degree), husband has no student loan debt
Car Loan: $2,500
Mortgage: I think we owe around $124,000 on a condo that is now worth about $100,000
Retirement: (we're 33 and 36) I think 10k combined
Our original plan when we sold the restaurant was to suck it up and pay the debt. We've NEVER been late on a payment and we both are currently able to pay extra toward the debt. We're not living paycheck to paycheck, but obviously don't have a ton of money left over each month either. My husband's latest FICO score is 719, the last time I checked mine, I think it was around 725.
With no savings and virtually no retirement, are we fighting a losing battle here? I've created debt snowballs for us both, and if all goes as planned, we should have the debt paid off in 5-7 years (ETA: I'm talking about the credit card debt, I'm not really focusing on the student loans right now). BUT, it also scares me that we have no savings and virtually no retirement.....sure we're still young, but we're not getting any younger!
I just don't know what to do. I really don't want to file bankruptcy, but the option would free up a lot more money to save. Even still, given our income vs debt (I know student loan debt isn't able to be discharged), I'm not sure we'd even qualify and we're fully capable of paying the debt right now. We've already done what we can as far as negotiating lower interest rates and consolidating debt.
Sorry for the rambling post. I just feel so lost and depressed sometimes about our situation. I don't know if I just need reassurance that we CAN do this and it's not the end of the world, or if there's more I can do that I need advice on.
Edited by Fishy, 25 February 2012 - 10:34 PM.