We Are Drowning in Debt!

[Music] brought to you by the Every Dollar app. Start budgeting for free today. Me and my husband are thinking about selling our home. Uh cuz we're just drowning in debt and we just don't have any other option to try to get out of it but to sell our home. Um so yes, that's what is what is what has created that scenario where you don't believe you have any other options? give us some details. Uh well, we are just drowning in debt and um I know y'all always sell say sell the cars and we looked into it. We owe um in one of our cars we owe like 9,000. Okay. And we we tried to see if we could sell it, but we will be under. It's really not worth selling. It's just I guess right now we just better off paying it off. And the other one is 12,000 and um that one as well is negative. So we're like, okay, we might as well just try to hang on to those and try to pay those off. And everything else is loans and credit cards, student loans, go through the other ones. Go through the other amounts for us so we can get a picture of this. So the $9,000 car, the $12,000 car, what else? And then loans, like personal loans, we know like 20,000. Okay. Credit cards is around like 35 to 35 to like 40,000. Okay. Student loans is my husband's is like 73,000. Okay. How much are yours? I don't have any. Good. And my uh we owe the IRS is like 9500. Okay. And then I have medical bills that's like 3,000. Okay. Okay. Well, what's your combined income? uh combined income is like uh 10,500 to like 11,000 per month. Yes. Okay. And have you added up um if you don't know, it's okay. But if I were to ask you on the spot, like how much does this cost you in payments every month? Do you know the number to that? Like the debt alone is like 4,000. Probably a little bit more. Okay. So, you're paying 4,000 in payments. And then tell me um what's your mortgage? Tell me about the mortgage. Tell me what you owe on it. The mortgage the mortgage is like uh 31 3100. Okay. And that's what you're paying per month, but tell me how much you bought the house for. The house we bought it for 386. And what do you what's it worth right now? It's worth uh like 385 387. Well, sweetheart, if you sell the house, that's not going to give you guys any much money at all. I I know we owe 340 on it right now, right? But after you pay your realtor, there's very little of this that is going to actually solve this problem, right? That's what we were like, okay, should we just try to fight for it or should we try to sell it and try to at least get out of it? Jade's got something to tell you. The only thing I was we were thinking is cuz my husband drives like an hour and a half commute to uh his job. Okay. He wanted to to uh he wanted to move closer to his job cuz it's it's a long drive. Could you rent for less money in that location? Sorry, Jay. That's okay. Um the rent's probably going to be like 2,000. Yeah. Not much difference. Not much difference. Yeah. Well, no. You said you're paying 3100 per month. Oh, yeah. That is that is actually a huge difference. 3,100 plus H uh the HOA. Oh, that's not including HOA. What's your HOA? Uh 250 every quarter. Okay. Every quarter. Okay. I would consider moving, Jake, in this situation cuz that's a long way to commute. Number one. Well, there's a couple of things. You got that big commute. I was going to ask you, is it an hour and a half each way or is that combined? Because if it's 40 minutes, that's not as big of a deal. But no, it's each way. Girl, yes, I definitely move. He has to drive into the office uh 3 days out of the week. So, two days he'll work from home, but three days out of the week he has to drive to the office. It's still a lot. 3 hours driving in a day is a lot to get to work. Um, so that's one that's one green light. It's not the biggest reason cuz like you said, it's not like he's going in every day, but it is a reason. The biggest reason for me to consider getting out of this house is because it's it's more than 25% of your take-home pay. And at this point, you need every dollar that you can get your hands on. Now, right, there is a thought here and and and you guys need to sit and talk about this cuz there's a thought where I go, okay, if you guys really start side hustling, if you start picking up your income, there could be a world when this debt is over that this is not 20 that this is 25% of your take-home. You see what I'm saying? That you raise your income and it becomes something that you can keep around. Today though, it's really a problem. So, I would say your homework to sit down with your spouse tonight would be to say, "What are all the things we can do to make money? What are your opportunities that are directly related to your job and what are mine that are do you do you both work?" Yes, we both work. So, he has his main job and then he has a part-time job on the weekends to make like some extra income. I try to work overtime. I work at a a daycare, so I try to work uh extra like overtime whenever I can. How consistent can that happen? Is that like a daily thing or is it like a couple times a month thing? It varies. It It varies. It depends on the teachers. Like I just found out I have CO, so I have to be out all week. Got you. So what I'd be looking for when I'm looking for a side hustle, I'm looking for something I can count on. That's the whole point. So, I'd be looking if I'm going to spend the extra hours working, I want something that's like clockwork. I can get it. I can go bust my butt and do it and it's there. So, you both need that. Um, and then if something if you know, uh, part-time pops up at the at the job and you have the the leverage, you know, the place in your schedule to do it, you do that, too. But right now, I want here's my my main job and a go-to side hustle that's always there. I can work it every day, every weekend. Got it. So, that's you guys' job to to come up with that tonight. And then after that, have you made a budget? I tried that dollar uh thing. I just downloaded I did like this free trial thing, but I'm going to have to cancel it because it's like $18 a month. Okay. Y'all need to stop borrowing money. Yeah, you got to stop borrowing. Ken is right. Yes. Like, you got in this mess because y'all are trying to do too much and you don't have enough money for it. So, uh, if you can't afford every dollar to get a budget, you better get it out on paper. You can afford it. You spend more on pizza delivery. Okay? You can afford it. Create your free every dollar budget today. The simplest way to budget for your