‘I just want a life where we know we can provide for our children’: Drowning in debt & struggling to make ends meet. How do we escape this financial nightmare?

Hi Money Minder,

Yo Money Minder, we’re in a real tough spot. My hubby and I have been married for four years and during that time, he adopted my son and we had two more kiddos. Back when it was just the three of us, we weren’t the best with money, but we could get by. After our second child, we tried to tighten our belts, but then surprise! Our third kid came along and we were in too deep.

Now we’re drowning in debt. We’ve stopped paying our credit cards just to put food on the table. We’ve got over 20k in credit card debt, a loan of 15k, a 401k loan, student loans, IRS debt, and more. We’re barely keeping our heads above water.

I got a second job and my hubby is doordashing to make extra cash. We’ve cut all nonessential spending and are barely scraping by. Daycare costs are killing us, and we owe them thousands. Our bank account is always in the red, and the cycle never ends.

We’ve tried financial services and counselors, but their solutions involve more debt that we can’t afford. We can’t file for bankruptcy because we can’t even afford the attorney fees.

We’re lost and desperate. How do we dig ourselves out of this mess? We just want to provide for our kids without living off ramen. Any advice or help would be a lifesaver.

Thanks for listening. We appreciate any help you can give us.

Peace out,
Struggling Parents

Response from THE MONEY MINDER:

Hello There,

I’m sorry to hear about the financial struggles you and your family are facing. It’s clear that you’re in a tough spot, but there is a way out of this situation. The first step is to create a comprehensive budget that includes all your income and expenses. This will help you identify where your money is going and where you can make cuts.

Priority should be given to essential expenses like food, shelter, utilities, and childcare. If you haven’t already, it may be worth reaching out to your creditors to explain your situation and see if they can offer any assistance. Some may be willing to work out a payment plan or reduce interest rates to help you get back on track.

In terms of reducing expenses, consider looking for ways to save on childcare costs, such as finding a more affordable provider or exploring other childcare options. Additionally, look into refinancing any high-interest loans or credit card debt to lower your monthly payments.

It’s also crucial to address the outstanding debts like student loans and the IRS payment. These debts can have serious consequences if left unresolved, so it’s essential to work out a plan to pay them off gradually.

While it may seem challenging now, tackling your debt head-on will put you and your family on a path to financial stability. Stay focused on the long-term goal of providing for your children and securing a better future for your family. All the best from THE MONEY MINDER.