conversation: User (beyond_drowning): "So I'm looking to see what, if any, options my wife and I may have regarding our very high debt situation.\n\nTwo kids, late teens. We've had a large number of issues over the years (medical, major house repair issues, major vehicle repair issues, out of work for an extended period of time) and decisions for years for her to focus on the kids and not work. She started working part-time a few years ago and for financial purposes moved to a full-time position earlier this year. We're still not able to stay on top of things though. Those issues combined with living above our means (it's not like we're taking vacations, have boats or anything like that though) and putting the kids  ahead of our fiscal stability got us into this position. What I mean by that is things like our daughter continuing dance classes she's taken for 13 years now, son continuing soccer, playing golf for his high school, etc. Right or wrong, I'm not looking for anyone to judge. It is what it is. \n\nCombined incomes are around $120k per year, but we're struggling with a large amount of CC debt, which is shown below. Typical family of four expenses with a house. Gas, food, electric, phone, internet, car insurance (with two teenagers, neither of them has a car though), medical insurance, homeowners, etc. We limit eating out to once a week, but just feeding a family of four alone is expensive. \n\nItem | Balance | Rate | Payment | Notes\n---------|----------|----------|----------|----------\nMortgage | $112k | 4.75% | $884 | 30 year fixed beginning 9/1/14\nCar 1 | $13k | 2.24% | $282 | Pay off date 5/14/21\nCar 2 | $25k | 2.5% | $388 | Pay off date 1/29/23\nVisa 1 | $24k | 10.74% | $450 | Limit $24k\nVisa 2 | $25.6k | 7.9 % &amp; 8.9% | $550 | Limit 26k. \n\n$199.6k Debt total. $2,554 total per month.\n\nWe've got essentially nothing in savings and are living paycheck to paycheck. I have one IRA that is worth $19k and neither of us is currently contributing towards any type of retirement savings. We have a few thousand dollars in upcoming expenses as well. $2k in car repairs that we're trying to push off. $2k in home repairs after the hurricane here that we're having to do. \n\nWe also are heading into our oldest going to college next year. So that upcoming expense is coming as well. However, years ago when the kids were both born my parents gifted them both stock that is currently still invested. Current stock valuations are $25k for the oldest (starts college next year, so would be liquidated soon to help towards school) and 20k for the youngest. Stock is in both our names and their names as well.\n\nI know that the debt consolidation stuff isn't really a solution from reading here.\n\nOptions that we're seeing currently.\n\n- Option One: Continue cutting more and more, but we've been doing this for several years now. \n\n- Option Two: Liquidate the $19k IRA and pay it towards the two CC's. All to one, split up, etc.\n\n- Option Three: Speak with a bankruptcy attorney and possibly head down that path. Obvious concerns here include the impact on everything, the IRA, stock for the kids college, etc.\n\nAny advise would be greatly appreciated!\n\nThanks"
  Self: "I think counting your mortgage is making you think your situation is hopeless. Maybe just prepare a plan of attack for how the CC debt will get handled. \n\nThat means a spending plan that is realistic about what is actually happening.\n\nYou have made some comments that suggest you aren't amenable to changing certain things. As an example, let's look at dance and golf. You have to make a decision about whether these things are non-negotiable "must" items. If they are, then where are the "non-must" items?"
  User (beyond_drowning): "I think you're right, looking at the CC debt alone would bring this to a different perspective, thank you. \n\nI think as a family, the "non-must" items are the challenging aspect of things that have probably been cut already. Things like DirecTV, vacations, etc. 15 years ago we had football tickets to our local college that we're both alumni of, those went back then, etc.. Things like that.\n\nI think that's why I stressed the family aspect of it and how over the years we've made that conscious decision (which is proving to be what's put us into this fiscal position) of putting the kids ahead of our financial needs.. "
  