Living on a Budget, Saving Money/Credit card debt


It's all on us. We have major credit card debts amounting to almost $50k (2 cards at $25k each). I have locked up the cards and continuously pay fixed sums (between $500-$1000) per card per month. This is severely restricted by my salary, as well as the interest rates that make my monthly payments practically redundant. I am the sole breadwinner and earn a monthly take home salary of $3,500. I am unable to contribute more to the cards monthly because of other family commitments (3 schooling kids). Save for selling my house, please advise a game plan on how I can reduce my card debits substantially.

Dear John,

I am not sure about the banking and economy in your country, but I think I can offer some basic insight that is probably universal.

You are going to have to go bare bones for a time, and that means no frills on expenses.  Reduce the family expenses in some area like entertainment or eating out.  Reduce communication expenses and eliminate cable if you have it.  As for the cards, focus on one at a time.  Pay the fixed minimum on the lowest interest rate card, and pay above minimum on the higher rate card.  Paying above minimum is the only way you'll ever reduce the debt.  

I don't know what your living expenses are, but the reality is, we can always cut the budget somewhere.  You mentioned 3 schooling kids.  I'm not sure, but usually there are some unnecessary expenses regarding peer pressure or "for appearances" that may need to be curtailed for a time.  No better time than the present to teach your children, living within one's means is important.

Sit down with your wife and make a plan.  Either you cut household expenses or she's going to have to get a job.  See what she wants to do, but the two of you cannot go on this way . . .  It's not a permanent problem, but it will take a change for a time.  If she decides to contribute to the income, don't even think of spending her income on anything but debt reduction.

Make a budget and determine to stick to it.

I wish you well.
Kind Regards,
KD Liz  

Living on a Budget, Saving Money

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Kindred Beisinger penname K D Elizabeth Beisinger


I can answer questions pertaining to budgeting, savings, debt reduction, and total freedom from debt. I can assist in prioritizing expenses and obligations. I am willing to share and offer guidance in realistic money management, modest investments, and financial freedom. I am not an investment counselor, broker or accountant, I am a missionary that does not do fund raisers or ask for donations.


I live comfortably and have been debt free since I was 40.

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