California State Employee is Suffering From Pay Cut Disease. – Martha
“Dear Steve, Married couple, I am a CA State Employee who had a reduction of pay of approx. $700.00 a month. We have two car payments and a mortguage, in addition we have credit cards debt of approx. $25,000. THe payments of the credit debt is approx 1,4000 a month and seems that we are living paycheck to paycheck and we hate it. We would like to reduce our credit debt but because of paycut we are only paying minimum payments. I did contact B of A on one of the credit cards and they reduced the finance rate on one card to 7% and they told me that the account will reflect closed by customer. How can we reduce our interest rate and get out of financial debt with

I’m Getting Married and Discovered She Has a Mountain of Debt. – Sammy
“Dear Steve, Thank you for providing such a valuable service during these difficult economic times. I am getting married in the spring of 2010. We have been discussing each other’s finances and unfortunately she will be bringing with her a mountain of debt. She is 50yo, Gross income is $120k, $45k of credit card debt, a condo that is valued at $100k that she owes $145k on, No savings, $60k in retirement adding $0k/yr. I am 47yo, Earn $85k gross, have a condo @ $225k/30yr @ 5.0%, $55k savings, $125k Retirement adding $15k/yr and a 50% Pension. From what I read she earns too much to declare bankruptcy, wou

Any Suggestions for Good Budgeting Tools to Dig Out of Debt? – Scott
“Dear Steve, My wife and I currently have credit card debt of about $60,000. In addition to that we have 2 mortgages and 1 car payment with about 1 year remaining. We both have incomes, and are barely able to make the minimum payments. We aren’t behind on any of our debts, but continue to live a lifestyle where we are putting groceries and gas on a credit card and not cutting down to the bare minimum on expenses. We are not friviolously spending money all the time, but probably spend at least 100 bucks a month on stuff we don’t need (daily purchases) and probably about 200-250 bucks a month on monthly things that we feel we need to maintain a certa

Should We Take Money From Our IRA to Buy a Car? – Brenda
“Dear Steve, Retired – husband 69 and I am 65 Husband worked for a now defunct airline for 28 years so pension is minimal from PBGC. I have an IRA worth about $210K (withdrawing $10K lump sum annually). We are both currently collecting social security. My husband has two part-time jobs and I have one part-time job producing an insignificant income. Our house payment is $1575 per month and we have two aging automobiles…1998 with 186K miles and 2004 with 110K miles. We need to buy another car and wondered if I should take the money from my IRA to buy a used car. We are currently very tight with out monthly expenses and having a car payment would real

I Live in Canada. I Go to School. My Debt Gets Worse Each Day. – Glanda
“Dear Steve, Hi my name is Glanda, i go to school. i got myself in a debt that i cant even pay back. how can i try to pay back slowly? i really need help with that. i dont even work anymore. iam really confuesed with this pls help me. iam willin to listen to any advise you give me just to get out because this not gettin any better but worst everyday. pls reply me back as soon as possible pls bye Glanda”   Dear Glanda, So you want to know the magic answer for breaking out of debt without any pain. I’ll tell you the honest truth, there is no way to do that. Digging your way