I need help---my husband and I have accumulated $11k in credit card debt on top of about $8k in student loans I am paying $250.00/month on and will be until June 2004. We recently had a beautiful baby girl and I am only working part-time to cut out any daycare costs. We own a home and just refinanced at 7.125% for 30 years. We also are at the end of a lease on our vehicle and need to buy a new vehicle and need 4wd because of the location of our house. I feel totally overwhelmed - we are able to meet all of our monthly bills, but I'm starting to feel like the cc debt will never be gone. Should we take out a personal loan or consolidate all of our debt. We both contribute to 401(k) and/or deferred comp. plans - should we stop those contributions - I am 27 and my husband is 30??

How about lowering your contributionsjust to the company match? Do you have a detailed budget and a plan for buying the major things like a new vehicle? Do you know where your money is going? Is there any luxury items you could cut? (cable, extras on the phone, etc?)


We really want to start a College Fund for our Daughter who is 7 months old - but realistically we know we need to get out of debt first!!

Don't worry about that so much. There are hundreds of ways to pay for school, if you don't have a large fund built up for her. Pay your debts. You don't say anything about what the household income is. There are some people here who think that 11K isn't much debt. You'll be ok.

Ishtar