Q: Is your LOC a home equity loan? You did a good thing to put those cards away. Is your monthly debt more than your monthly income? If it is you need to find a way to increase your income or decrease your debt (no brainer there!). Do you and dh both work?
A: Yes, the LOC is a home equity line, and we do pay out each month more than we take in. Even if we cut down to the minimums each month, it’s still more than we bring in. I’ve talked about getting rid of the cable (both tv and computer) and my hubby practically hyperventilates! It would be a big deal for him to give up the tv (sports nut) and it would be a big deal for me to give up the cable line for the computer, so I figured at least it would be even. He balks at it, but it’s much harder for him when I ask him if it’s worth $1,200.00 a year.
And yes, it is a no-brainer to increase income or decrease debt…. unfortunately, no-brainers don’t always get followed effectively! My husband works in accounting/finance (oh, the irony!) and for the most part, I’m a SAHM. I am a Southern Living at Home consultant and make a bit of money with that, but our income is primarily from hubby. Neither he nor I want me to go back to work, but at least we know we aren’t down to our last penny with no options.
HEL loans are explained in this video:
I am in the same boat as well. I am a SAHM and the only way I can work is to find a job that I can only work during school hours. Unfortunately, jobs like that are hard to come by, but I am still trying. It is not worth sending my kids to daycare after school bc it will cost $500 a month and I will only be making about that much:( Right now I am selling some things on ebay. Things that I never use, clothes still with tags that I have never worn, etc. It is helping and giving me some extra $$ to pay on CC’s monthly.