There does not seem to enough cash to cover the monthly expenses. Zero balances and bounced checks (covered by bank) seem to be common. There are times when my checks are deposited (direct) and all it does is cover the checks already written. Our bank has charged us several hundred dollars in the past few months for NSF. It is tough to purchase food with a zero balance on payday. My commuting costs are 36% over our housing costs. If we relocate near work, housing costs will at least triple. My wife is scarred to relocate because of the job market and what we have been through. We have not vacationed in 6 years. We shop at Wal-mart for food and most needs. We may go to a local buffet for a dinner out. Our furniture is 14 years old. The kids ride hand me down bikes and play in the yard. We do not have any club memberships to pay. We want to be able to buy food and not worry about a $50 returned check fee. What do we need to do to have some extra cash available both now and in the future? I will net $60K this year. Similar net income last year. Our credit card balance total is $23K (7 various cards) with a monthly minimum of $877.00. Additional monthly bills total over $2500.00.

My suggestion would be to do a cash out refi (our FICO are 701). We owe 24K on house and the estimated value of the house is 70-90K. Take 23K cash out and have a new 15 yr. mortgage. Payoff of the main credit cards would remove almost $900 of monthly expenses. Cancel the cards that are paid off. My wife quoted Suze Orman in saying never use the home to pay cards.

Hi Tommyjoe206
You need to cut exspenses every way you can If you are making 60K a year that is a lot of money but your credit score will go down if you continue to bounce checks You need yo get rid of every thing that is not necessary Ask yourself do I need a cell phone, cable and the internet? You need to have basic housing food etc Cut up those credit cards and pay with cash only It will not be easy but it can be done Spending more than you bring in is not the answer

Also your wife is right, do not use the house to pay off credit cards. That will be a big, big mistake. You need to reconsider your commuting costs. If your commuting costs are greater then your housing then you really need to think about either a job closer or moving. You would be able to save there on gas, time, tolls, wear & tear on the car.

Ok, first, NSF charges are spending you poor, stop writing a single check unless there is money in the bank, PERIOD< no money, no check written, that will save you 100's and maybe 1000's.

Next Budget. You shop at Walmart, I wish I could, I get my clothes at Goodwill and Salvation Army. Eating out maybe once a week is the treat when you order off the dollar menu at McDonalds.

You have a spending problem, you will need to first cut up credit cards, no more spending on them. I am sorry club membership, maybe the Y for a famiy at the most