This has been a busy summer for me... I'm 23 years old.

I finished a decorated college career in May in Cincinnati. I got a job offer in Orlando, FL and accepted the position. I then got a better job offer in Ocala, FL and accepted that one. I've been on the job since mid-July. I'm making 36K / year plus commission in the Florida real estate industry. I'm on track to 75k this year, but it takes time for the money to roll in. I should be a division manager before age 30 making a solid 6 figure income (family business).

Anyway, my wife and I were married in Disney World this summer. I had to pay for the expensive (but nice) wedding. My family took care of a reception in Cocoa Beach, FL and her family took care of the reception in Cincinnati.

My wife is not finished with school so she has been on a job hunt here in Ocala with no luck yet.

We didn't want to throw money into an apartment, so we bought a brand new RV and we are living in that while we save up for a home.

Anyway, after being together for 5 years as a young couple, we have racked up about 35K in CC debt (as much as my annual income!). Our minimum monthly payments are around $750. Our car payments are $500/month. After groceries, gas, and other living expenses there is no money left.

In June, before I put the wedding on my credit card, my credit score was 715. It has taken me 5 years to build up my credit (no delinquincies, good credit since age 18) and I'm afraid to file BK.

We want to purchase a home in one year and I could probably save for a large down payment without these credit card payments, but not sure if mortgage companies will look at us with a BK. The company I work for owns an "A" credit mortgage company that ususally doesn't touch people without a 660 middle score. I have connections to B/C lenders that have financed people in high 400s.

What should I do?

cut expenses ASAP.

You should stop using the credit cards.

Yes, we actually stopped using the cards about a year ago until I had to put my wedding on a card!

Here are our monthly expenses, from greatest to least:

1. Credit card minimums: $820.82
2. RV Resort "Rent": $400
3. Car payments: $496.32 (two cars)
4. Groceries: $300
5. Insurance: $193
6. RV Payment: $175
7. Student loans: $103
8. Cell phones (family plan): $96
9. Misc. (hair cuts, pet care, etc): $80

Total monthly bills: $2663

Total gross income: $2340

Once my wife gets a job, we will have more income than outgoing, but until then we're screwed!

well...maybe a part time job to make ends meet until your wife starts working.

::: backing out of thread now before I put my foot in it and say something about "paying" for a big, fancy wedding when you don't have the funds to be able to do that :::

I am biting my tongue too...

reduce expenses and increase income.

if your wife is still in school why doesn't she have a PT job?

You might have to get a part-time job selling pizzas until that extra commission rolls in. Wife needs to get a job asap, even if it's babysitting or working at Taco Bell. Sell the cars--are you upside down on them? Absolutely cut up the cards, see if you can transfer them to a 0% rate card, you should be able to if your score is still up there. You can live on a total debt diet for a bit to pay off the cards. That means no fancy haircuts, no cell phones, no cable, cut back on groceries to $50 a week. I would sell at least one of the cars, preferably the wife's car if she is not working. Budget every single dollar you earn, and get the wife working. If you work at a family business, you might consider (even though it will be hard on the ego) getting rid of the RV and moving in with some family while you get this straightened out. That would free up a lot of money.

If you do declare bankruptcy, you can get a home about a year afterward. I know several people who have. You won't get top interest rates though. But if you have 33K in credit card debt and you're going to be declaring bankruptcy, make sure you get the spending habit under control before purchasing a home. I would hate to see you in the same boat two years down the road but this time looking at a foreclosure and no option to declare bankruptcy. Good luck!

$300 a month in groceries for just you and your wife?

I'm SURE you can reduce that somehow.

we don't spend that much in groceries and household goods (including diapers) I don't think each month... (well not usually ) ETA: and there's three of us.

I have homework tonight, and I really only have time to post to ONE thread. You are the lucky winner ... hint: This is NOT a good thing. It's time for some tough love. You're 23, so this is a good time to learn this lesson



What kind of program is your wife in? Why can't she work? Of course if she does, you will probably need to keep the other car. So there's your choice - two cars, expensive groceries and a working wife ... or one car, cut back on the groceries and the wife doesn't have to work.

When she DOES get out of school and gets a decent job, don't do ANYTHING else until you pay down that cc debt ... $820 for MINIMUMS??? OY VEY!!!! Never in all of my years in the real world have I had $820 MINIMUM payments. You will never get those paid down just making the minimums. In fact, I would daresay that when wifey does get a job, you should use ALL of her income to pay down these cards. How much longer till she gets out of school?

You need to take a long hard look at how you're spending money. And STOP it. Trust me, no one knows better than I what it's like to struggle. But if you don't want to be here in your 60s looking for advice because you've screwed up yet again, you better get a handle on it NOW.

And trust me, I wish someone had told me when I was 23 what I just told you. Good luck.

Well, unless there's no public transportation and/or they're hours away from wife-y's college, I doubt it. (ETA: for clarification I mean I doubt they absolutely HAVE TO HAVE two cars or will die without it).

I mean Fi and I manage with one car even with fi working until 11 pm on Tues/Wed and DD being in daycare and me being in school those days... Public transportation is great...Especially when I get it free for being a university student.

::disclaimer: I realize not every person has circumstances like that...however before fi was working until 11 pm we were also able to schedule my classes around his schedule AND even if not free, if you have public transportation available, I'm sure it would be much cheaper than the car payment, insurance, gas, and maintenance each month. ::

What's your credit score (or scores) NOW? Have you pulled your credit reports and those of your wife's?

You guys KNOW my tongue is bleeding...

LOL. I hear ya!!!!

the OP might be []b[][/b] but who knows????

Lots of good suggestions here, OP.

BK is and should be a last option for you. In NO way is it an easy way out.

I just realized...The OP has two cars and an RV or did he mean a mobile home?

I ask because my great grandmother had/has an RV I can't see a need for two cars and a recreational VEHICLE....I mean it would be a pain sure...but if nothing else ya can drive that to work....(provided there's a large parking lot).

I'll provide some answers and I truly appreciate the responses so far.

Yes, we NEED two cars. We're brand new residents to the state of Florida, so she will not be returning to college for about a year so she can get in-state resident tuition rates. She IS looking for a job, we've just been unsuccessful. In Cincinnati, she made $16/hour at a bank. Here in Ocala, FL... she has had two offers for less than $10/hour. She will be accepting the first offer she takes, but we're trying to find the most income.

We will drastically reduce our grocery bill. We thought $300/month (~75 week) was normal for two people, but we realize we're over spending there. We're both eat healthy... no junk food, soda, etc... just a lot of fresh chicken, rice, etc.

We LIVE in a 26 foot travel trailer (with a slideout!). It's not the kind that you drive... it's the kind you hitch up. We do not have a tow vehicle because we don't need one. We're not traveling, we're living in it.

We have a lot of credit card debt.. about 35K worth.

I had my mortgage rep (for my company) pull my credit yesterday and he said my middle score is 674 and my wife's is 655. I know that my FICO was in the 700s when I opened a checking account the first week of June, but I knew that adding a wedding to my credit card would drop my score.

I don't want to file BK... I think we can stay afloat as long as she gets a job ASAP and I work on my days off. Another family member owns a lawn care company and my old job in Cincinnati has asked me to work from abroad so that will be some additional income.

Work is going really well, fortunuately. The real estate market is tough in some parts of Florida, but I've sold 4 homes in the past 6 weeks. If I were on straight commission, I would have made ~$9,000 but I'm on salary plus bonus until I am fully trained.

I sincerely appreciate the tips.

Oh, about the cars. My '02 Infiniti is worth about $14k and I owe $11k. I have 104k miles on it. I saw a '99 4-door Honda Accord with only 58k miles for $6,800. Should I sell my car and apply the profit towards a lower mileage, slightly older Accord or Camry? That would reduce my car payment, probably reduce car insurance, get slightly better gas mileage... just a thought.

don't have the mortgage rep pull your scores again...unless you are applying for a mortgage. a HARD is an expensive way to learn your FICO score...

IMO, I wouldn't sell a reliable car with equity to purchase another used car. You might end up with more problems than you bargained for.

Also, I don't think your food bill is excessive for a family of two. I spend almost $200 per month on groceries and I'm single. I also eat healthy food, which tends to be much more pricey than the foods that aren't as good for you.

We typically eat healthy too...

Buy a whole chicken and cook it how it needs to be done.

Buy lots of fish/sea food but only what's not expensive (we really like Mahi Mahi which I got for only like $5/lb which isn't really that bad, and salmon and sometimes tilapia).

We try to get leaner beef.

Lots of fresh veggies and fruits, but only what's in season/inexpensive.



For instance we have frozen in our freezer for the rest of the week:

King Ranch chicken (made with chicken of course)
Mexican Casserole (made with ground beef)
Shrimp scampi
Black bean soup (well, this was for tonight and tomorrow for DD's lunch and we'll eat whatever's left over for tomorrow's dinner as well).


Then we do have a day of frozen pizza but...DD and fi love pizza...

Of course we don't buy all organic or anything mainly because our budget doesn't allow it. But I guess that's the whole point: eat what your budget can support...If it can't support the only organic, either you need another job or ya need to say "hey as much as I'd like it, it'll have to take a backseat in priorities for now."

ETA: This week probably isn't quite as healthy as other weeks...I'll admit that. But we typically try to have seafood/fish at least once a week, I am trying to get a veggie meal in there once a week (like the black bean soup, or veggie sandwiches and soup)....

Oh, that reminds me I need to go whip up the chicken salad for my lunches for the week.

I think I am the opposite. I would say yes to selling the car, especially if he can make a $3k profit on it. Then buy a $2k car and put $1k toward the credit card debt. He doesn't have to drive the clunker forever but at least for a good two years while he pays off the cc debt.

This is my first post in this forum so please bear with me.

Let me start of my congratulating you on all the positive things about your credit like the timeliness of payments, etc.

From what I am seeing, things aren't desperate yet. Scores are good, and you (finally) have the foresight to
to look at the writing on the wall. I suggest you start a hunt for zero percent BT cards to start reducing those minimum payments. In the extreme case, you could also try to borrow money from your family/friends for a short period of time (30-60 days) to reduce your UTIL - that will easily push your scores past 700 making it easy for you to get zero percent cards PLUS cash advances. These steps, plus all the great tips by the posters ahead of me (plus the bonus you are expecting) might be a better solution than bankruptcy.

One thing I strongly suggest is not to mess around with your car right now. The last thing you need is a new headache in the form of a problematic car. If you have a car that runs well, why trade it in for a 8 year old car?

I wouldn't think that a brand new RV would be cheaper than renting an apartment when you figure in the depreciation. Do you plan on selling the RV when you buy a home? Will it be worth more than you owe?

Does (2. RV Resort "Rent": $400) include electricity & water?

Do the CC's have high interest rates?

How much longer is your training until you get straight commission?

I’m also biting my tongue on why in the world someone would pay for a big wedding with money so tight already. But – what’s done is done.

As for the rest, a second job sounds like a good option. Or you could start going to yard sales and seeing what “treasures” you could find that might make some money on ebay, amazon, etc.

I'm not the OP, but I will answer this from my POV. The answer is Yes it is better. We bought (albeit not new) a travel trailer instead of having DH rent an apartment/Corporate Suite while he was on a year long assignment in Georgia. Now his "lot rent" was only $300 a month and included basic cable, electric and water. We added in high speed Internet and a phone for $75.00 a month. On top of that we would have had to furnish the apartment. So, for $375 he got what we would have paid $900- $1100 for (apartment) or $1200- $1400 for (corporate suite). We bought the camper 4 years ago for $4000.00 and we just sold it for $3500.00

Yes, much like a car, boat or trailer home; travel trailers will depreciate. BUT if you sell it at the right time of the year, the loss is not that much and you can ususally get at least pay off for them.

So, basically the OP is probably accommodating himself cheaply with a lot included in the "lot." Try to furnish an apartment and pay the bills for less that the $500.00 a month they are paying for the travel trailer and lot rent, in a resort area of Florida.

I will agree with the car thing. I wouldn't get rid of a reliable car to buy a beater either.

Now ... one thing that the OP has said that just irritated the heck out of me was this ...



Ocala is NOT Cincinatti and she nor you should be basing her earning potential off a city half a continent away. If she has been offered two jobs, then she HAS been successful - she just didn't want to "make less" than she was in Cincy. Here's a news flash - $10 an hour is better than $0 an hour.

And it irritates me so much because you KNOW you have all these bills to pay and she's passing up jobs because they don't pay as much as she would like them to pay. That's insanity ... she could continue to look for a better paying job, but for crying out loud, she needs to take whatever she can get RIGHT NOW. You don't really have the luxury of picking & choosing your job in a situation like this.

It brings back memories of when the people from up north started invading Houston in the 1980s ... and the men who wouldn't take a job for $12 an hour because they'd made $18 in Michigan or wherever they came from. HELLO! This isn't MICHIGAN. It's Houston and the economy doesn't support that salary. This situation is really no different. You can't keep your nose in the air when you're drowning; you better start swimming or else you'll surely sink.

I still stand by getting rid of the car. A $2000 honda or toyota is going to be reliable enough for a year, especially in Florida. It's not like he's in Wisconsin with a car that has to endure a long winter. Plus if he sells the car and makes a $3k profit, and buys a $2k car, he can put $1k directly toward the cards and have an extra $200 a month that he can apply to the credit cards.

You're expecting that $2k car to not need ANY repairs for at least a year. And that's not bloody likely. Just how old a car do you think $2k will buy?

Also, if the OP's wife got a job making $9 an hour, based on a 40 hr workweek and a 25% tax base, she'd be bringing home just over $1k a month. That right there would solve the money problems.

Yes, she will be taking the first offer she gets that's $9/hour or more. We have had quite a few leads, so we're praying something comes through soon.

Uhhg, I called my worst credit card... it has about a $12k balance @ 15%... it's been at 15% since I got it at age 18 (2001). It's a 1st Financial Bank credit card and they said that 15% is as low as they go... I have the best rate they offer. Could I even do a BT with a 674 middle score?

I think you are underestimating the depreciation of a BRAND NEW RV. Maybe the OP can share more detail, but if a $20,000 travel trailer loses 1/3 of it's value in the first two years, then the depreciation expense is between $250 & $300 per month. Adding the depreciation expense to the lot rent & the interest costs of the financing makes it a lot more expensive then it seems. If it's financed for 15 or 20 years, w/ a small downpayment, then it will be very tough to sell it for enough to pay off the loan.

I bought a '94 Nissan Sentra SE-R one year ago for $1750 and I have spent about $200 in repairs/maintenance. I bought it w/ 78k miles on it and now it is up to 88k. Most of that $200 was preventative maintenance, because I plan on driving it for a long time. It even came with a sunroof & a CD player. It's got a few dents & chips, but it polished up pretty nicely & passed inspection w/o needing anything. Here she is:

that shoulda been a sign not to get married or have a wedding that expensive...

Glad you're getting this in control now rather than later, though many decisions including the expensive wedding were obviously not in your best interest.

As for First Financial Bank, they are one of my ex-banks so I can verify they stink and will never lower your rate.

As for a reliable car, I bought my SIL a 99 Taurus with 85K on it with full power options for 2050.00. It still runs great two years later with nothing more than the brakes being changed on the front for 60.00.

Good luck with everything.

Sell yours and buy the other.

Hondas and toyotas are better cars and resell higher than yours will later on.

Hondas and Toyota's are reliable cars, but we are talking about a 8 year old car here. All I am saying is - Why not focus on some issues and leave others for later. Car problems can be very tiresome and while there are several stories with happy endings of onwers who purchased 8 year old (or older vehicles), I am willing to attest that there are several owners who have a bitter tatse in the mouth from a bad purchase.

It all depends on how good of a mechanic you have. If you have a mechanic that knows the type of car you drive and that you trust not to rip you off, then driving an older car can make a lot of sense as well as cents. Or if you know how to work on them yourself.

I drive a Mazda Miata. I have a mechanic that only works on Miatas. He knows all the idiosyncracies of these cars across all years. My original Miata (which was a 92) had 150K miles on it when it was totaled 2 years ago. He saved me so much money on that car that it made good economical sense to keep driving it. And I know he did save me money because I had gotten quotes from other places for certain things and on the items I got quotes for, he saved me $2000 alone.

So I disagree with the across the board statement that driving an older car is always a bad choice.

I'm with Quilty on this. You said your wife has had TWO offers for $10 an hour? So why hasn't she taken one of those jobs? Then later you say that she will take the first job that pays $9 or more.

She needs a job. Like yesterday.

she probably turned them down and now they are no longer available...

Some money is always better than no money. I don't understand that... Anyway, wife should take what she can now, she can always accept a better paying job IF one comes along - but by NO means should she make zero money and wait around for the perfect job to come up.

She needs to get a job even if it pays $7 some money coming in is better than NONE...

and my uncle has an 1988 accord and it runs perfectly fine. was given to him by my cousin whos kid was beating on it and he didnt want him to...

I think you are underestimating how popular travel tailers (campers) are here in the south. Next year he could get $18,500 for that $20,000 camper with no problems as long as it is still in good shape (or at least this is what they are going for in the paper here a 2005 is going for about 1500 to 2000 less than what the NEW cost was). That was one reason we bought our from DH's Dad. We could not even swing a "used" one at that time. So, add in $100.00 for depreciation a month and they are still ahead rent and furnishing an apartment in a resort area.

It sounds like maybe your wife is still getting used to things in your new area. There's a big chunk of ego that goes with a salary demotion, but the important thing to stress is how much she's helping out you and your marriage. I would ask her to put in applications places where you'll get a discount on things you buy already - grocery stores and department stores are hiring right now too because college and high schoolers have gone back to school.

Hell, if I were in the OPs situation, I'd probably get ANY job that paid....Like she said, $XX/hour is better than $0/hr and you could always continue looking for a BETTER paying job.

Yes, this would definitely help. And that would be one less big monthly bill to worry about. Plus your insurance would probably go down some.

Let's see, right now she's making $0/hr, I'd take any job even if its McDonalds. A little money is a lot better than no money. She needs to take whatever job she can find and continue to look for something better while she works.

To the OP, Ocala is a growing town but Central and North Central FL are notorious for low paying jobs. Blame it on the attractions for keeping the wages down (I know Universal made a big deal for raising their hourly to $7.25). If she has an offer at $10 I would say grab it. Its not like she is going to stay there for a long period of time and it will keep you afloat.

I actually find the opposite. I spend about $300 for 3, including household supplies. I am the health person, while my fiance and son aren't. By cutting down on their junk we endup getting more "real" food at a lower price( they might want a box of cookies whereas 3-4 pounds of fruits/veggies costs the same price,etc). Sometimes you have to plan a little bit, like buying chicken when it's $1.79/lb instead of $4,etc. However, it's pretty easy. Last time I actually spent only $130 for what I expected to last exactly 2 weeks and now on day 14 I still have a few meals left plus leftovers.

I can attest to the lower paying jobs there. I went from Chicago making $11-13/hr to Jacksonville and the highest I found was $8.50, so please let your wife know it's OK to find a lower paying job. And yes, she needs to do whatever she can. Before DH & I got married I took a job that was a 2 hour commute each way just because it was the only offer I got and we needed the money. Did it suck? You bet it did, but I did what I had to do for my now husband and I to survive.

I've tried.....I really have....my tongue is still bleeding...but I can't not reply to this.

OP, sit down somewhere with a cold one and a little time to yourself and ask yourself why you paid that much for a fantasy wedding on a credit card. Seriously. Was it for you? You just had to have the best, most perfectest wedding? Was it for your wife - did she need this beautiful wedding? To impress parents/family/friends/co-workers/etc.?

Because paying for it may last longer than the average marriage. Think about that for a bit. Get mad about it. Anger stirs up energy. and you're going to need some energy to dig out of this hole you've built.

If it's a case of "Princess Wife", she needs to understand pretty quick that she did not marry into money. She needs to know that she will have to pay off this wedding debt - she doesn't have a free ride. If you were the "prince" in the scenario, GET OVER IT.

I can't even imagine a wedding that's worth paying $800+ per month for the next 29 years. How old will you be in 29 years? ( I used a calculator at bankrate.com - assumed a total CC debt of 35000 even, at an average interest rate of 12% - some of it may be at a higher rate, some at a lower rate - that's just the average I used).

29 YEARS of your life, paying for this wedding. Insane.

The ONLY sane thing to do is to do whatever it takes to get this paid off ASAP. Princess Wife may have to take 2 jobs - Prince Husband may need to pick up a second job. Work-from-home (not all are scams, but many are so be careful), eBaying, babysitting, mowing yards - whatever it takes. She's a college student (temporarily out of school) - she should be able to tutor middle and high school students. Get creative, get crazy, but GET BUSY.

29YEARS is too long.


(stepping off soapbox now)

I don't think the wedding costs 35K. That is the total of their cc debt that they have accumulated over the last 5 years. The wedding is what dropped his score; went way over the recommended 30% usage I bet.

I think everyone agrees that he doesn't need to look at bankruptcy as an option but a severe tightening of the belt for finances is needed.

Looking to buy a house in a year would probably be very unrealistic for them but you know when you're young and taking on the world sometimes you just got to learn things the hard way. No response from the OP on any of these suggestions?