Suddenly in a hole with Debt - what should I do ?

[Sk323i]

I'm trying to figure out the best way to tackle my financial planning.

Current Score is 750

14K on a 16K balance - Discover at 0% for 18 Months

US Bank Credit Card: $2K - 22% APR

60K student loans - at average of 5% - for next 20 years - $605 Monthly Payment

12K Auto Loan - 2% for 3 More Years - $420 Monthly Payment

Primary Residence: 640K Mortgage - 29 Years - 3.49% - $3700 Monthly Payment

Rental property: $190K mortgage - 26 Years - 3.49% - $1200 Monthly Payment

We are comfortable right now - net income per month is $12K per Month. 

Misc. Bills are $3500 a month

The student loans have killed me. 

My days of spending money are over.

We need a new car as our family is growing.

We have friends and family all over the country - and because we like to travel - we spend alot of money traveling. 

Should I just go full monk - and only eat rice/beans - and dont leave my house for a year ?

Should I stop 401K contributions, and downsize healthcare plans, and just focus on debt elimination - and still maintain similar lifestyle ?

Shuold I sell my primary property ?

I dont have very good disclipline - but I have been fortunate to bounce back from being $30K in debt with a sub-500 credit score. 

[GreatLife]

Good thing is it appears the college debt resulted in good income for your household. I would leave everything as is, except sell the investment property for a price that pays off the mortgage and student loans. Use those former monthly payment amounts to payoff CC's to $0, then throw the combined former monthly amounts to paying off the car loan. After that a goal might be to paydown the primary mortgage, and/or save to buy another investment property with cash.

[SouthJamaica]

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@Sk323i wrote:

I'm trying to figure out the best way to tackle my financial planning.

Current Score is 750

14K on a 16K balance - Discover at 0% for 18 Months

US Bank Credit Card: $2K - 22% APR

60K student loans - at average of 5% - for next 20 years - $605 Monthly Payment

12K Auto Loan - 2% for 3 More Years - $420 Monthly Payment

Primary Residence: 640K Mortgage - 29 Years - 3.49% - $3700 Monthly Payment

Rental property: $190K mortgage - 26 Years - 3.49% - $1200 Monthly Payment

We are comfortable right now - net income per month is $12K per Month. 

Misc. Bills are $3500 a month

The student loans have killed me. 

My days of spending money are over.

We need a new car as our family is growing.

We have friends and family all over the country - and because we like to travel - we spend alot of money traveling. 

Should I just go full monk - and only eat rice/beans - and dont leave my house for a year ?

Should I stop 401K contributions, and downsize healthcare plans, and just focus on debt elimination - and still maintain similar lifestyle ?

Shuold I sell my primary property ?

I dont have very good disclipline - but I have been fortunate to bounce back from being $30K in debt with a sub-500 credit score. 

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There are too many contradictions in what you are saying. You say you're in a hole. And yet you say you're comfortable. I really don't understand what you're asking.

Should you go full monk and eat rice and beans?  Why not? It's good for you.

Should you not leave your house for a year? No, you should leave your house every single day.

Should you stop 401k contributions and downsize your family's health plans? No.

Should you focus on debt elimination? Yes, that's good for you.

Should you maintain a similar lifestyle? I have no idea, because I don't know what your lifestyle is, other than that you like to travel and see friends and have a growing family. Nothing wrong with those.

Should you sell your "primary property"? I dont know what you mean. If the question is should you sell your home, the answer is no unless you can live somewhere else that will cost less. If the question is should you sell your income property, that depends on a lot of variables, such as whether it's producing income or losses, and what the tax effects would be.

[NoMoreE46]

It looks you are running north of $900,000 in debt before another vehicle.   Let's see if we can try to work some stuff out.

Guessing that your monthly payments are almost  $10,000 of that $12,000?

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@Sk323i wrote:

I'm trying to figure out the best way to tackle my financial planning.

Current Score is 750

14K on a 16K balance - Discover at 0% for 18 Months

US Bank Credit Card: $2K - 22% APR

60K student loans - at average of 5% - for next 20 years - $605 Monthly Payment

12K Auto Loan - 2% for 3 More Years - $420 Monthly Payment

Primary Residence: 640K Mortgage - 29 Years - 3.49% - $3700 Monthly Payment

Rental property: $190K mortgage - 26 Years - 3.49% - $1200 Monthly Payment

We are comfortable right now - net income per month is $12K per Month. 

Misc. Bills are $3500 a month

The student loans have killed me. 

My days of spending money are over.

We need a new car as our family is growing.

We have friends and family all over the country - and because we like to travel - we spend alot of money traveling. 

Should I just go full monk - and only eat rice/beans - and dont leave my house for a year ?

Should I stop 401K contributions, and downsize healthcare plans, and just focus on debt elimination - and still maintain similar lifestyle ?

Shuold I sell my primary property ?

I dont have very good disclipline - but I have been fortunate to bounce back from being $30K in debt with a sub-500 credit score. 

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[CreditCuriosity]

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[Sk323i]

the problem with this logic - is that it will be impossible to get purchase prices or interest rates - on a new home for less than 200K at 3.5%. 

So i am giving up a very profitable rental - even though I need to equity to get myself out of debt.

[Anonymalous]

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@Sk323i wrote:

The student loans have killed me. 

My days of spending money are over.

We need a new car as our family is growing.

We have friends and family all over the country - and because we like to travel - we spend alot of money traveling. 

Should I just go full monk - and only eat rice/beans - and dont leave my house for a year ?

Should I stop 401K contributions, and downsize healthcare plans, and just focus on debt elimination - and still maintain similar lifestyle ?

Shuold I sell my primary property ?

I dont have very good disclipline - but I have been fortunate to bounce back from being $30K in debt with a sub-500 credit score. 

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No, don't become a monk under house arrest. But it does sound like vacation travel is one of the big areas of spend that you have a lot of control over. The hyperbolic phrasing suggests you already know this, but don't want to make the cuts you know you need to.