[USER]

We bring home $5,638 a month (my husband I have combined our finances) and our fixed expenses are $3,827 a month. I want to sell one of our cars as we truly only need one but we are both so upside down on them and we don’t have any cash savings to pay the remaining amount.

We are truly trying to get a grip financially. We have credit card debt as well and are currently using the snowball method to get out.

But if I could have extra money to throw at it, I’d like to. Any tips are appreciated. Bills are as follows:

• Cars: roughly $1200
• Rent: $1,170
• Electric: varies but we budget $300
• Phone bill: $156
• Insurance (includes car, life and personal item): $330
• Student loans: $353
• Private loan (husband had consolidated debt before we met. Will be finished paying in December): $245
• Gym: $51

[Kimberly]

Found this tip yesterday! Also, I would suggest value-based budgeting. What are areas you think that you spend too much on?

I could tell you to stop going out to eat, but if that’s something you genuinely enjoy, you probably won’t stick to. So, look at your last three months expenses, find what you are spending where, and go from there.

If your goal is to pay off debt as soon as possible, you have to make sure you are willing to make those life style changes to accommodate that goal! Since you are doing the debt snowball method, are you comfortable with your debt free date? If your are, then maybe the extra money you are reducing from other areas go to savings or investing or planning a vacation.

It really just depends on your goals and lifestyles!

[Noa Ve]

We use Mint Mobile, $30/month for 2 lines.

[Jeff]

The one that stands out to me is phones. We use Cricket Wireless. Five lines for $160 a month. No issues with service.

I think two lines is $90 a month.

[Amber]

Can you update the post with your variable expenses? Like eating out, groceries, entertainment, vacations. These are the categories that many people overspend in, that can be drastically reduced while trying to get out of debt. I don’t believe in not treating yourself every now and then along the journey but I’m sure you could find tons of money to cut from this category and apply to your debts.

[Kerri]

I’d snowball what you’re upside down in the car that would take the least to sell and get.

rid of that first, then roll that car payment into your snowball amount towards the credit cards and personal loan. You’d also save on insurance only having to carry it on one car plus tag fees. You really only need to get the one car loan down to the break even Point so you can sell it. Can you use that second car for one of you to work a side hustle for a bit to gain some temporary extra income to get momentum?

Do you have anything laying around the house you could sell for some extra cash?

You may also want to save up $1000 emergency fund to keep from adding to the credit card debt when something unexpected pops up.

I’d look very closely and track what you’re spending on groceries and eating out for one month. A lot of the time, we’re spending much more on those than we realize and it’s an easy and quick place to start cutting back.

[Carrie]

I honestly think that you need to take one debt at a time. I would add the upside down part of the Car notes to the snowball list and once you get right side up on at least one car, I would reevaluate then. Your bills don’t look that out of whack to me. You’ve got this!

[Erika]

To get the electricity bill down: throw a the switch on every single big appliance when not in use. You only need up to 2 hours to heat your water then throw the switch. I I’ve in Florida and I haven’t turned on the AC yet, I run fans and a Dehumidifier which the Dehumidifier uses 10% of what the AC does. Unplug every single thing you are not using. Better for Mother Earth and a savings in your monthly bill, win – win

[Nick]

My bills look quite similar to yours. When I analyzed it, my focus has always turned to shopping my insurances and shopping my phone/internet/tv. I cut $150 or so in the last couple months by changing my homeowners and reducing some services with my internet/TV provider.

Not too much can be done with student loans and whatnot. Credit card debt can be juggled over to 0% offers if you have good credit and at least stop interest from working against you.

[Author]

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