Thursday, September 14, 2023

Personal Finance Implosion

Deleted from r/PersonalFinanceCanada, via Shazi:

"We're in a mess and need help

My husband and I are in a deep hole and unsure how to get out of it. Looking for any advice.

Currently our monthly income (including baby bonus of $139) is approx $9600.

As of November I go on maternity leave with baby #2 which will drop our income to approx $7900/month for 6 months (as I get a top up from work) and then to $6700/ month for the remaining 12 months.

MONTHLY EXPENSES

Housing
Mortgage: $1984
Hydro: $157
Gas: $157
Water: $157
Tv + internet: $133

Insurance
Home + auto: $437
Dog insurance for two dogs: $104

Other Dog wellness plans: $136 (a dog wellness plan for everyone asking is all of a dogs annuals vaccines/ blood work added up and divided by 12, plus unlimited vet visits so you don't get charged $100+ every time just to see the vet) Groceries (including diapers/wipes etc):
$600
Dog food: $150
Gas: $400
Cell phone: $340
Miscellaneous: $400
Daycare: $888
Apple plan: $14

Debt Payments
Kia: $890
Ford: $581
Personal loans: $1500
Student loan: $350
Credit cards: $465
Paybright: $61

DEBT BALANCES
Personal Loans 1: $70,000 2: $36,000 3: $15,000

Student loan $44,220

Credit Cards $15,000

Paybright $242

Kia $64,000 (financed)

Ford Leased until Sept 2025

Cellphones $1950 (Our cellphone bill is so high due to financing both of our phones through it)

Mortgage $494,000

Total monthly expenses: approx $9904

Total debt (not including mortgage): $246,412

We've been trying to rack our brains to come up with a solution on how to tackle this mess especially given the drop in income coming up soon. We've calculated that we'd need approx $50-$55k during my mat leave to make all of our payments. So we've contemplated borrowing money but really that just puts us in a deeper hole. We've even contemplated selling our home and renting but unsure if that is the right move currently. We had our home appraised about a year and a half ago and it was valued at $650,000.

Any and all advice is appreciated."

The left always claim that the problem is people not earning enough money, and capitalism being broken. But a lot of poor people also have poor spending habits, like this family.

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