Let me introduce myself. My name is Chris and I am a twenty-something male married to an amazing twenty-something woman. I work in the health care industry and my wife works in education. We currently live in northern New Jersey and have a combined income right around $90,000. Over the past few years, we have racked up an astonishing amount of debt. Granted, most of the debt is in student loans but that is no excuse for our lack of sound financial discipline.
Here is how our debt breaks down:
- His Car Loan: $7,279.19
- Her Car Loan: $8,673.10
- His Student Loan: $66,070.88
- Her Student Loan: $48,763.88
- Best Buy Credit Card: $1,468.90 (0% until August 2010)
- Family Loan: $16,500 (used to pay off credit cards)
- Personal Loan: $1,922.68
GRAND TOTAL: $150,679 (I updated our debt numbers at the end of October and will be doing it again for November soon)
The car loans are at pretty low rates because they are at our credit union. If I had to guess, I would say that our cars are worth a little bit more than we owe on them. The student loans are also at very good rates. About $40,000 of the loans are private loans. Since general interest rates are low right now, they are too. The personal loan is also at our credit union and it is at 12.9%. That is our highest interest rate on our debt.
The loan that bothers us the most is the family loan. A family member offered to pay off our credit cards as long as we agreed to pay them back. It just makes us feel bad that we owe them this money and we cannot wait to pay it off.
So, there you have it. Our debt story is unique but I can imagine that there are people out there in the same type of position we are. We look forward to giving you an inside look into our struggles with debt and how it affects our lives.
From Frugal Dad: I’m looking forward to Chris’ contributions here. We both agreed the timing was perfect since the Frugal family recently completed our journey out of debt, to highlight another family going through the same challenges. I can’t wait to watch those debt balances fall (especially the credit card debt and personal loans) as Chris and his wife dedicate themselves to a frugal lifestyle. It takes a lot of guts to admit that number, even on a blog, and I know readers will appreciate Chris’ candor.