Ilaine, what I don't understand is the financial MADness of two high income people [not that they would think they are] living so beyond their means that they get into such muck.
I do understand it really, but it always baffles me that people are so badly developed intellectually and emotionally that they do that. I doubt that it's bad luck other than them taking spending risks which are then topped off with normal life volatility, which one should reasonably expect over a period of time, so they are unable to cope with the unknown known risk when it arrives. It's like banging one's head against a brick wall. It seems so silly to inflict pain on oneself.
It's the opposite of how I have always lived, so it seems absurd to me. Most of the planet's human population, who live happily enough on a tiny fraction of that $150,000 income, can't understand it either.
$600,000 debt at 8% = $48,000 a year. Why don't they pay $100,000 a year to their creditors? Maybe the loan is $100,000 at 12% = $12,000 a year and $500,000 at 7% = $35,000. That's about the same. That must be all they are paying in interest.
$150,000 less 30% tax = $100,000 - $20,000 living expenses = they can pay $80,000 a year towards principal and interest.
Sell the SUV. Buy an old bicycle and repair it. Buy rice, cabbage, carrots, peas, beans, pumpkin, onions, garlic, eggs, bananas, grape seed oil. People throw away clothes by the truck-full = find out where they are throwing them. No booze. No smokes. No talking about food, including which restaurant to go to. Go to bed at 10pm. Get up at 6am. Turn off all the lights, heating, contraptions and drama. Stop taking Prozac and going to "therapy".
Be Happy,
Mqurice |
