Struggling as a solo mom

Debt Forum
1

i’m 37, working full time, making around $70k a year. i owe about $191k on my house, with a mortgage of $1470 monthly at a 3.75% rate. i’ve got about $5-6k in credit card debt and owe $15,5xx on my car loan at 8%. other small expenses add up to hundreds, maybe even thousands, every month.

i’m considering a HELOC or personal loan for debt consolidation but don’t know which route to take. i bank with a credit union i’ve been with for over 15 years. dealing with finances has always been tough, so advice would be helpful.

edit: i know i need to stop using credit cards but there are times i’ve had to just to get by.

2

you need to break down all those little expenses to get a clear idea of where your money is going. it’s likely more than you think.

3

Ode said:
you need to break down all those little expenses to get a clear idea of where your money is going. it’s likely more than you think.

exactly. when you don’t know where the money is going, it just keeps slipping away.

4

if you owe $191k on a house worth around $220k, you may not qualify for a HELOC.

5

pay minimums on the mortgage and car and tackle credit cards first; the interest on those is likely much higher. also, try to avoid adding more credit card debt.

6

you’ve got this! check out the wiki’s prime directive here: https://www.reddit.com/r/personalfinance/wiki/commontopics/

7

a HELOC might not work unless the house appraises higher. maybe try a 0% balance transfer for the credit card debt.

8

Reece said:
a HELOC might not work unless the house appraises higher. maybe try a 0% balance transfer for the credit card debt.

i do need to stop spending on boujee coffee and energy drinks, but $100/month isn’t gonna fix my life.

9

@Anna
every bit helps; an extra $100/month could make a big difference in paying down the credit card interest.

10

a breakdown might help:

income: $3,600 (after taxes)
mortgage: $1,472
car: $350
insurance: $87
credit card minimums: $312
utilities: $405
misc expenses: $350 (i.e., baseball, lawyer, hoa)

this should leave around $300 but see if there’s anything missing.

11

focus on budgeting and getting an emergency fund set up, even if it’s just $1,500. once that’s in place, tackle the debt.

12

Fern said:
focus on budgeting and getting an emergency fund set up, even if it’s just $1,500. once that’s in place, tackle the debt.

thank you for the advice. i’m struggling with what to do for my son’s upcoming birthday and the holidays.

13

@Anna
he’s 14; he’ll understand if you’re honest about the financial situation.

14

try a zero-based budget. focus on the essentials first, then reduce any other expenses.

15

be cautious with a HELOC; it’s secured by your home, so missing payments could put you at risk.

16

Lyra said:
be cautious with a HELOC; it’s secured by your home, so missing payments could put you at risk.

good point, thanks for explaining.