Hi,
we are deep financial trouble and are asking for help. here are our details.
Take home income annually: $94.5K

Debts:

Mortgage 1: $1275
Mortgage 2: $1900 (cant sell this house as parents are living in it)
Car 1: $470 (3% APR - will be completed in 2010 - AUG)
Car 2: $390 (7% APR - Will be completed in 2012 - FEB)
CC1: $8696.5 (2.99% APR - Feb09)
CC2: $7315.37 (0% APR - Jan09)
CC3: $10651.64 (16.99%)
CC4: $12912.11 (15.99%)
CC5: $2560 (15.24%)
CC6: $8895.95 (13.99%)
CC7: $2059.19 (13.9%)
CC8: $4740.87 (11.89%)
CC9: $280 (8.9%)
CC10: $13175 (1.99% dont know the date)
CC11: $5432.41 (0% dont know the date)
CC12: $3556.17 (4.99% till payment made)
CC13: $2950.16 (0% dont know the date)
CC14: $406.06 (0% until may09)
CC15: $5300 (0% until Oct08)

we have been trying to put $250 in savings for the last sixmonths in hsbc. we opened a charles schwab account for our checking. I am making a total monthly payments of $1750. At the end of the month after all the bills i am ledt with 300-400 that is with not doing anything, not eating out, no movies,just to live. Please help me in clearing my debt faster. Is AOR worth trying? our credit scores are 704 and 690 respectively. Are there any other methods to clear debt faster. Can one of us try AOR first and then after one year can we try on the other so that we can keep extending the 0% offer.PLease advice. Need all the fellow FW's help.
Thanks

Almost 90,000 buck in credit card debt. What the hell did you buy?

Are your parents living rent free?

I dont have any advice for you but hopefully everything works out. Why not sell parents house and move them into a small apartment?

"I thought of selling the house but you know it is tough to convince parents."

Its better then losing the house.

cj4ualways said:i thought of selling the house but you know it is tough to convince parents.

and sorry, they are living off of you. boot em into a decent apartment for probaly more than 1/2 the cost.

sell the house (probaly for a loss) and refinance the remaining amount so your payments aren't quite as high, apply the difference to the highest APR credit card.

SonorityGenius said:

I agree where is the left over going towards?
hookers and blow, qed.

OP, could you move back into the house in which your parents are now living? Then sell the house you now live in. Yeah, it'll be tight with everyone in the same house...

And see if you can consolidate the CC debt onto way fewer cards. You've got too much going on with too many cards.

out of our 145K income 50k goes as 6% in 401K ( we doing this as our company matches upto 6%), health insurance, life insurance and taxes for both of us. the remaining $2950 includes the following:
Car loan1: $450
Car Loan2: $390
Car Insurance: $105
Gas for both of us: $175
Utilities: 150 + 40 + 10
Phone: $100
Groceries: $300
Savings: $250
Anything additional left : generally goes to CC's.

cj4ualways said:out of our 145K income 50k goes as 6% in 401K ( we doing this as our company matches upto 6%)

General question to everyone, wouldn't you think it would be better to pay down debt (esp to a manageable amount) rather than contribute to your 401k? I mean, sure.. the 6% matching is nice, but when does debt become so much that you shouldnt contribute to a retirement plan?

Another way to think about it, is that OP has 90k in debt, it could be wiped out in less than 2 years if he doesn't contribute.

Crazy to think that someone with 145k take home, has 90k of debt.

MartyTwice said:cj4ualways said:out of our 145K income 50k goes as 6% in 401K ( we doing this as our company matches upto 6%)...Another way to think about it, is that OP has 90k in debt, it could be wiped out in less than 2 years if he doesn't contribute.
6% of OP's income is $8700 NOT $50k. It will help some but it's not going to knock out debt in two years unless he gets free insurance and no taxes.