Six Figure Debt

I haven’t written on this site in a while because frankly our financial situation is so depressing that I didn’t even want to acknowledge it all all, it was much less painful to bury my head in the sand and forget about the turmoil in our financial life. However, things are looking up in a big way and my wife and I are counting our blessings that we both landed great and I mean GREAT jobs in our areas of expertise. My wife is a Teacher and she was hired on the eve of the school year starting. It came as quite a surprise to us as we had given up hope that she would get a job.  Needless to say, she took the job and I transitioned into the General Manager role in her small business.  It wasn’t much of a transition as we have spent countless hours working on her business over the last two years. After about a month I received a completely unexpected call about a really great position with a company that I had done work for in the past.  Believe me, I had no idea this position would come up and when I interviewed and was hired it was a pleasant surprise. So….here we are, both with great jobs and a growing small business. What to do next? Between the two of us we are now making about $150,000 annually. I don’t count on any income from our small business as we reinvest everything we make back into the company. We are now in a position to get back to the debt snowball that I started last January.  I’ve decided against seeking settlements with the CC companies as I now have the means to pay down this debt and would like to have a clear credit report when this is all over. The first thing we plan to do is contact all of our creditors and set up a plan to get back on track.  With our current income we should be able to get all the cards current and start eliminating the debt.  We will tweek our debt snowball a bit to account for the current balances and get to work. For the time being we will live on my wife’s salary and use mine to pay down the debt quickly. The credit card companies are getting a tad more aggressive, instead of them making the decision to work with us to get back on track they are starting to threaten litigation.  Suing us isn’t an option as we don’t owe any one card enough to even pay them to sue, I’ve also begun to take a hard-line with the callers.  I simply tell them they will have to wait a couple more weeks until I get paid, I don’t argue, I simply repeat the same things…”I’ll pay you as soon as I get my first paycheck.”  Some don’t like it and try desperately to get some money out of me but it is fruitless as we still haven’t gotten paid.

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