People who struggle with their finances come in all shapes, sizes, ages, and salaries. You can make a lot of money and still be struggling with financial problems.
Debt Problems Can Happen to Anyone
We see people who make $10,000 a year and spend $20,000 and people who make $100,000 a year and spend $110,000. There is something that rings true about the saying, if you aren’t careful, that the more you have the more you spend.
I met with prospective clients recently. Five years ago life was good: they were making $100,000 a year, owned modest vehicles, and had a half-million dollar house. In today’s economy, a $100,000 income is no longer considered to be rich, but it is certainly comfortable.
However, their problem was over $90,000 in credit card debt. The resulting payments were more than $1,500 a month and they were not making progress on it. With a mortgage payment of $3,400 a month there was no money left over for anything other than utilities and food.
A house that was at one time affordable was now a millstone around their necks. Prosperity didn’t last. Business, while adequate, is not what it used to be. The older kids, now out of the house, needed occasional help. The wife, once able to work, has physical issues and is now unemployed. Meanwhile, the $3,400/month mortgage payment wasn’t going anywhere.
What Could Be Done?
When I recommended they sell their massive house and downsize, a look of horror was present in their eyes. Sell our house? Move into a smaller one or an apartment? You must be kidding!
This was no joke. Reality in the form of not being to meet the minimum payments when they are due meant it would only be a matter of time before their financial life falls to pieces. By selling their house it would allow them to make bigger payments on their credit cards and put them back on the road to fiscal sanity.
Are you in a similar position? It’s time to set some priorities, like taking care of the kids and your health and getting to work every day. Do you want to worry about scrambling to keep a burdensome house, or do you want peace of mind knowing you can pay your bills on time. The decision is really rather easy.
If your debt is out of control, schedule a free consultation with us and see how we can help.