Newbie question: planning to go into debt

I’m new here and looking for advice on my family’s financial situation. Here’s what’s going on…

I’m a SAHM with only my husband’s income.. net $2,520/month. Since I decided to quit my job 8 months ago, we have accumulated about $8,700 in credit card debt. My husband’s earning potential is quite high. In 2 years, he will be earning about 6 times his current net income. For the next 2 years, we plan to continue having me stay at home.

This means that our credit card debt will increase over the next 2 years, probably maxing between $20k – $25k. We only have about $5,500 in savings. We are planning a cross-country move in 1 year for a fellowship program. My major concern is:

how will i manage the minimum payments on the credit cards?

If anyone has gone through a similar situation or can offer advice in anyway, I’d much appreciate it.

Your situation rings really true to me. I quit my job 6 months ago, SAHM now, husband’s income is about the same as yours, and we will be moving in several months (about 700 miles away) for a fellowship. My father is 78 and will possibly be needing long-term care in our home. (nursing home is not an option).

We differ with an accumulated (since quitting job) $8,700 in CC debt (and planned increase to 20 or 25k). That averages to about 1 thousand dollars a month shortage. Can you do anything from home to offset that? Must that continue for 2 more years? How does the 1 year move factor into hubby’s new net being 6 times greater? We are a cash-only family now. We got into debt living in a fantasy (we’ll get a bonus, next job will pay better, tax return will be here soon, reimbursed mileage check will be in soon or our favorite- WE DESERVE IT purchase on credit.) We are currently looking at selling the house and moving to new location with NO DEBT! No cars, no mortgage. We have accepted that we will not be able to buy a house as the cost of living is much higher in the new area. Saving grace, the fellowship provides a stipend to live on. Amounts for ’06-’07 year are not in yet. My husband’s income COULD really go up- IF HE GETS HIRED. He is looking at federal jobs.

They are slow to respond. 3-6 month lag time is normal. That is before dealing with background checks. We have gotten ourselves into so much financial trouble in the past spending what we term “if come” (income that IF it comes in has already been spent 6 times over.) We are planning on just my fellowship money as I cannot work as a stipulation of the program I enrolled in. We must budget any money from the sale of the house to offset a potential loss of salary. But even the assumption that the house will sell is a mistake. We still must plan that if it does not sell, we may need to pay two house payments for a time.

Do you have a budget? Do you follow it? Have you sold off anything you could think of? (We had a yard sale and made enough to pay the mortgage for the month) Is your husband guaranteed a job at the new cross-country location (like a lateral transfer from one state gvt to another?) Are your kids in public school (if of age), do you home school, or are they in private school?

The ultimate issue must be: What can I really live without? We justified expenses for years. We NEED TV, newer “stuff” etc. Once we really bottomed out financially, we re-visited the needs and wants. We need food. We want new clothes. We also took fast $500 loan from WhoNeeds500 and it helped a lot.

The only way I can think of justifying “planning to go into debt” would be to buy a house. I am always concerned that my husband may one day be unable to work. I must live within my means. For us, we cannot even plan to buy a house in the new location. Even if we found a reasonable mortgage, could we afford repairs and the like? I do not WANT to live in a small apartment on campus, but since my body has become accustomed to eating on a semi-regular basis, if that is what we are called to do, we will.

Many times through the years people have given us sound financial advise. But we always knew more than they did. Hmmm..who is in deep debt now-us or them?

So, after all that is said and done.the only advice I would give you is to be cautious. Try not to rack up more cc debt that you might not be able to pay. If you do not have a budget, get one. Track spending. Find out how much disposable income you have. Try selling stuff or working from home to make up the difference..

I hope I was not too blunt.