“If You Can’t Live on $100,000 Something’s Wrong With You”

[Music] brought to you by the Every Dollar app. Start budgeting for free today. >> I was calling because with me and my husband combined, we have a debt of 562,000. Um that includes our mortgage, but besides the mortgage, most of that debt is his. Um we're following your baby steps. We've been following it all year, but it doesn't seem like we're getting anywhere. And if anything, right now we're back at the same amount that we had at the beginning of the year. Um, I I I didn't I just don't know what to do. I don't I don't know what to do anymore. >> I'm sorry. How could you get back into debt? I'm When you're getting out of debt. I'm confused. >> Exactly. Yeah. Well, we've had situations with our cars come up and then he he loves to use his credit cards for anything that comes up. So, >> Okay. So, we're going into credit card debt while we're trying to get out of debt. So, he's not really trying to get out of debt. He's running business as usual. And you're trying to get out of debt. >> Yeah. Yeah. I mean, I have $11,000 of that debt is mine that even even myself right now, I I just I can't seem to get out of it. And I'm physically >> You said $562,000. How much of that is mortgage? >> 500,000 is mortgage. >> Okay. What's the 62,000? >> Um, so 11,000 is mine and then the >> No, there's not a mine. You're married. The $11,000 on what? >> It's basically just credit cards. >> Okay, so you have $11,000 credit cards. What else is out there out of the 62? >> It It's all credit cards. We only >> You have $62,000 in credit card debt. >> Meet Every Dollar Budgeters Christy and Steve. They used to fight about money. >> I'm the spender. I'm definitely the saver. Now that they budget with every dollar, they're on the same page. Money is definitely one thing we do not ever fight about. >> Having the budget gave me the permission to spend. >> Knowing that the money is in each category, it just allowed us to work together better. >> Now that's what we call a win-win. >> Now we just have to pick paint colors. >> We can't help you with that. Every dollar, create your free account today. >> You have $62,000 in credit card debt. >> Mhm. >> I'm sorry. You don't have a car payment. >> That's true. >> Uh just one car payment. We have a We have $1,000 left on it. >> Okay. You owe $1,000 on a car. And what do you owe on your student loans? >> We have no student loans. I paid off my car. >> Okay. So, you basically have $62,000 in credit card $61,000 in credit card debt. And what's your household income? >> Uh I make 82 and he makes 80. >> Okay. Okay. So, $162,000 with a $500,000 mortgage. And And uh how long ago were you zero credit cards debt? >> Well, I was at zero credit cards last year. Um he's always had credit card debt. >> How long have you been married? >> We've been married for five years now. >> Okay. So, when you're married, it's all ours. Mhm. >> You understand me? Okay. So, you were never at zero cuz he's always had credit cards cuz we have had credit cards cuz you are married to Mr. Credit Card. >> Yes. >> Okay. So, you've been married 5 years and we have always had credit card debt. Uh, how much credit card debt did he come into the marriage with? >> I think at that point it was around maybe 70,000. So it's it's maintained for about the last five years about the same. >> Yes. >> Okay. So in his past he overspent which is what the credit cards came from. But we're just going to >> Okay. So how old are you guys? >> Uh he's 41 and I'm 30. >> Okay. All right. Well I I this is not a um a systems problem. This is a person problem. It's a behavior problem. Okay? So, your system of getting out of debt is not going to work until both of you decide you're going to get out of debt. He has not decided that. And so, you got you you know, you have a marriage issue to sit down and talk to your husband and say, "I want to get on the same page. I want us to get out of debt." And you can't tell me you want to get out of debt unless you put all the credit cards on the table and cut them up right now. Yeah, we actually did that this weekend. >> Uh, two quick questions. Give me quick answers here. How long have you been trying to to do the baby steps? >> Since the beginning of this year. >> Okay. And then do you guys have separate finances? I'm guessing you do. The way you're talking. >> Yeah. >> Yes, we do. >> And then and then one other one I I forgot. Does he use the credit card as just all of his expenses and he's under the guise I'm going to pay it off at the end of the month but he never does. Is that what's going on? He's running everything through it. >> He was. >> Yeah. >> Not anymore. >> What? How? Why did he agree to cut them all up last weekend? >> I I think it's because, you know, he's 41 and I'm just I'm disappointed. I mean, I just I can't take it anymore, you know. Um, I have never had debt and I've even racked up 11,000. >> Okay, wait a minute. Stop a minute. Okay, I get all that, but he cut up the credit cards last weekend and then you called me and said he keeps going into credit card debt, but it sounds like this guy turned the corner last weekend and said, "I'm getting out of debt. I cut them all up." I'm confused about what you're upset about. I I guess because I didn't I thought the number was lower than what it is. So that's >> But you knew that last weekend. >> Yeah. But I I'm at a point where I don't I don't know what to do. I can't pay off what we what we owe. I I just don't >> Yes, you can. You make $162,000. You only need $62,000 to pay all this off. So you live on a h 100red and you are debtree in one year. Voila. >> Yeah. It's fairly easy. It's $5,000 a month and you are debtree in one year. The two of you sit down and do a budget together. Combine your stinking finances and get on the same page and go, "We're going to put $5,000 a month on this debt cuz you cut up the credit cards and I'm over this. I can't sleep. I'm terrified. I'm done with all this irresponsibility." And you are, too. Thank you for cutting up the credit cards. Let's get on this and rot lock arms and let's attack this thing and be done. That's how you do it. You make enough money to pay this off in one year. Easy. >> That's right. If you can't live on $100,000 in Nashville, something's wrong with you. >> Well, I don't I've tried. I've tried and it doesn't it just doesn't add up with daycare, with everything. It It just doesn't add up. >> What's your house pay? No, I know what your house payment is. Yes, it you you have not done a budget because the math you're giving me is just not factual. Okay. You don't You can pay daycare and eat and pay your house payment out of $100,000. That's $8,000 a month. Quit your 401k if you're getting a refund. Reset your W2s and quit getting a tax refund. Cash out whatever save money you've got in savings. Chop up the credit cards and attack this. So there's something uh Liz, your your hopelessness is not logical unless you believe he's really not going to stop, in which case you need to go see a marriage counselor. But if he is uh if he's acting like I'm talking about and he goes, "Yeah, we're going to live on beans and rice, rice and beans. We're going to stop the 401ks. We're not going on any vacations. We're going to sell so much stuff the kids are afraid they're next. We're getting extra jobs. We're going to live on a written budget. The two of us are agreeing together. I just cut up the credit cards. Boom. 5,000 bucks a month goes on this. That's $60,000 a year. That leaves me a hundred,000 to live on. Shut up and do it. That's what it takes right there. You just got to go do this now. And but you can't you can't live in the past and be going, "Well, how you get back to any?" I don't care. What all we all that matters is the next 12 months. Game on, baby. Super Bowl. Put the ball in the end zone. Let's go. Create your free every dollar budget today.