Because I still owe $140,000 in loans and desperately need to get out of debt.
You'll likely need someone who is more than a millionaire to find someone who can gift you $140k. Shoot for a billionaire.
Heh. The thread I just replied to asked me what I would do if I won the lottery. I would help Nichomachean get free from debt! I don't have much now but you can have these!
Dude, go win that lottery.
All this being anonymous, that's rhetorical, of course. No shame is involved in this instance.
Which is why I can say with no shame that you should man up and pay your debt. Scale back to live within your means, and pay when you can. It's not like your dealing with kneecappers. (I hope not...)
Don't be afraid of being broke; You can always find food and housing assistance through government programs and charities. If you can't afford it, go bankrupt and try to start fresh.
If you're big enough to swallow your pride and beg, you're big enough to keep your pride and DIY.
Is bankruptcy so bad that it has a worse stigma than begging?
All this being anonymous, that's rhetorical, of course. No shame is involved in this instance.
Which is why I can say with no shame that you should man up and pay your debt. Scale back to live within your means, and pay when you can. It's not like your dealing with kneecappers. The lack of oversight over the credit industry is a shame, but it's not like it's going to change tomorrow.
Don't be afraid of being broke; You can always find food and housing assistance through government programs and charities. If you can't afford it, go bankrupt and try to start fresh.
If you can swallow your pride and beg, you can keep your pride and DIY.
My debt is from student loans that total 120,000$. Simply put bankruptcy doesn't protect you from student loans. I have scaled back my life style, but when 3/4 of what you make a month is being paid to the loan companies, you don't have much left over no matter what. And the debt just keeps getting bigger because I can only afford the minimum payment.
Sorry, but I've no sympathy, if you can't afford it, dont get it, simple as that. I've had to sack and prosecute people who have got into serious debt. Such people have typically lost their job, their wife & kids, their homes and their friends. Occasionally it also costs them their life due to their being suicidal or hospitalised due to severe depression.
If I were to offer you any positive advice (rather than chastise as I've done above), it would be for you to cut back on all but the essentials, if you really need a car to get to work, buy a cheap one only, otherwise public transport is the way to go. Maybe downsize your home if you're a home-owner etc. 140k debt is amongst the worst of cases to be honest with you. I only hope you realise just how extremely serious it is, I'm not sure you do because posting about it here on a game forum indicates you're still taking a jovial attitude to it.
I know I might get flamed for this post, but hey, you started the discussion.
My debt is from student loans that total 120,000$.
Go put that medical and/or law degree(s) from Harvard to use.
Go put that medical and/or law degree(s) from Harvard to use.
I think if he had a medical or law degree from Harvard he wouldn't be in this mess.
Student loans blow. Especially since they changed everything in '05. You used to be able to file bankruptcy and be clear. But now they have you by the neck and wont let go. Viva Revolution!
No offense intended, but getting into 140k debt due to student loans is utter insanity. We all know that loans are loans. They have to be repaid (obviously, its a loan after all, not a gift). If you knew you might struggle to repay it then you should not have enrolled on a course that would potentially bankrupt you. If you buried your head in the sand and decided to not worry about repaying it until later, then that's completely foolish.
Sorry, but I've no sympathy, if you can't afford it, dont get it, simple as that. I've had to sack and prosecute people who have got into serious debt. Such people have typically lost their job, their wife & kids, their homes and their friends. Occasionally it also costs them their life due to their being suicidal or hospitalised due to severe depression.
If I were to offer you any positive advice (rather than chastise as I've done above), it would be for you to cut back on all but the essentials, if you really need a car to get to work, buy a cheap one only, otherwise public transport is the way to go. Maybe downsize your home if you're a home-owner etc. 140k debt is amongst the worst of cases to be honest with you. I only hope you realise just how extremely serious it is, I'm not sure you do because posting about it here on a game forum indicates you're still taking a jovial attitude to it.
I know I might get flamed for this post, but hey, you started the discussion.
It is stupid, and I am not very good with finances. That doesn't mean I should be forced to give up most of my wages for the rest of my life. I rent, because I can't afford a home. I will be moving in with a family member, because I can't pay rent even with my wife working.
I think your attitude is very cruel. Not because you have no sympathy for me. But because you don't seem to care that people lose everything they hold dear because of massive debt. Not everyone understands finances. And many people make mistakes. I know it was stupid to get into debt. I didn't understand finances and needed money for school and housing while I studied. Big mistake. I just question whether I should be forced to live like a slave for the rest of my life because of it. I hope you never have to go through the agony of crippling debt. It is the worst thing I have ever experienced. There is no way out. And yes, suicide is on my mind. I wouldn't do it. But it occassionally pops in their as a solution. I have also thought of intentionally becoming homeless or moving to a foreign country to evade my debt. I have been tremendously depressed for an entire year. I wouldn't wish this on anyone. No matter how foolish they are.
I am taking it very seriously. That is why I am posting here and elsewhere in a true and desperate attempt for money. I really need it.
And to be blunt, these companies do everything they can to encourage people to view the loan as an easy option. It's no surprise that people are taken in - that's what the advertising and salesmanship is there to do.
Nichomachean: I don't have the money to give you even if I were willing to pass on such a large sum. But I have some idea of how bad things can seem (and are). My important advice to you is to not panic at any point and hang in there. Large debt is a constant pressure that makes you feel sick. You're not alone in that situation. If you can eat, keep your job and have shelter though, hang in there. I know it seems this situation could go on for all your life, but it wont. So long as you are still able to look after yourself in the very basics and endure, then eventually circumstances will change. Eventually you'll be earning enough that your monthly budget will less on the line all the time and during the intervening time you will also learn to panic less / feel the horrible feeling of seeing your money taken from you less. I know that may sound patronising from someone not in your position, but I have been in poverty myself and if you stay healthy and functional, you will get through it, I promise.
Very few in the USA today consider the possibility of living in real hardship. The sort of rice farmer "I worked twelve hours every day and had almost nothing" poverty that they only associate with Depression Era great grandparents or people in Third World countries or the immigrants that worked to send every spare cent back home to bring their families over. There is an expectation of affluence. But you are in a dire situation and the pressure of that expectation is as big a part of the problem as the situation itself. I promise you I don't mean this glibly: accept the situation as it is (so long as you are getting the basics of life) and re-adjust your expectations for a while. It will help you clear your mind, relieve some of the mental anguish, and ultimately might help you consider ways out of the situation. Countless immigrants worked through such poverty and their partners even stuck by them, sometimes waiting years to see them again. You are in the same position as some of them. You can get through this. And though it's particularly hard when you have a partner to consider also, that is also a great source of strength sometimes.
Is it possible to work abroad for a while in a country where the currency is much stronger than the dollar? Do you have friends or family that might be able to pay off your loan so that you can pay them back at a better rate? Can you arrange a repayment holiday with your creditors to help you get back on your feet? Can you get a second, part-time job to bring in a little extra cash to put by? These are just my practical suggestions which you may mostly have already considered. The main thing I wanted to post to say was simply the above - hang in there long enough and things will change, if only because so many more people are coming into your situation that they will have to, or because inflation outpaces your debt in the next few years. Don't torture yourself with expectations - you're in the same position as many people in the world and in history that came through it and prospered. It will pass.
I'm sorry I can't help materially, but I wish you good luck and hope you can see your way to clearing some of the pressure from your mind.
Khadim.
All I can recommend is to not get overwhelmed. In the words of the hitchhiker's guide "Don't Panic". Just focus on realistic assessment of your situation. Get a plan, a good plan, and make it work.
Study and learn how to survive in your situation. Check on the internet and you might find other people who have been in the same situation and have found their way through it. Talk to them and see what strategies they've used.
You always have options, just keep your eyes open and your wits about you. Make sure you don't fall for any cons or tricks along the way, you're in a difficult situation but the easy or fast ways out may well be tricks laid by unscrupulous people.
You have my best wishes.
...when 3/4 of what you make a month is being paid to the loan companies, you don't have much left over no matter what.
1 million -3/4 = 250,000. (Also, see Chris Rock on alimony)
With 120k in loans, I hope you make at least 80k a year.
80k-3/4=20k= Not that much less than what I earn. A lot of people get by with much less. The poverty line is about 12k a year, and there are many people in the USA living in poverty. So, unless you only make 40k a year pre loan, You should be fine. Hell, I once got a 32k/year job in insurance with only a GED
Many poor people in America aren't that bright. Assuming that you are smart enough to be able to utilize your expensive education, you should be able to figure something out. Unless you're a trustafarian, you should have enough life skills to get it together.
Slightly off-topic, I think a great education is overrated. I know several people with masters degrees who don't work in their field of expertise, after blowing 100k; and I am within 1 or 2 degrees of a couple of people with doctorates who had to go to community college to get a factory job. This is what happens when every guidance counselor in the country recommends College (capital "C") to everyone. Asking a 20-something to spend upwards of 60k on a skill set that they may not even like or have a use for is a little stupid, IMO.
I do hope it works out for you. But frankly, I am not worried, and for your minds sake, neither should you. There are a lot of people worse off than you who are doing fine.
Student loans blow. Especially since they changed everything in '05. You used to be able to file bankruptcy and be clear. But now they have you by the neck and wont let go.
The fact that people think about filing for bankruptcy before getting student loans is a big part of the problem. Accepting a virtual lifetime of debt in return for an education is unfortunate, but it is what people do. Entering into the agreement thinking that you can just file for bankruptcy afterwards says something about your honesty, not the greed of the bank. Once upon a time in America, people took responsibility for the things they'd done.
As to the question of debt for education, you have two choices. You can pull yourself up by your bootstraps and manage to pay it off or whine, complain and hope it goes away. The likelihood of winning the lottery is low, I would recommend putting your nose to the grindstone. The chance you'll find someone to give you the money to pay it off is unlikely, better to suffer through and pay it off. Finding a wealthy benefactor is possible, but would you rather owe a bank or a person? If a person loans you the money, what will they want for their "investment"?
1 million -3/4 = 250,000. (Also, see Chris Rock on alimony)
With 120k in loans, I hope you make at least 80k a year.
80k-3/4=20k= Not that much less than what I earn. A lot of people get by with much less. The poverty line is about 12k a year, and there are many people in the USA living in poverty. So, unless you only make 40k a year pre loan, You should be fine. Hell, I once got a 32k/year job in insurance with only a GED
Many poor people in America aren't that bright. Assuming that you are smart enough to be able to utilize your expensive education, you should be able to figure something out. Unless you're a trustafarian, you should have enough life skills to get it together.
Slightly off-topic, I think a great education is overrated. I know several people with masters degrees who don't work in their field of expertise, after blowing 100k; and I am within 1 or 2 degrees of a couple of people with doctorates who had to go to community college to get a factory job. This is what happens when every guidance counselor in the country recommends College (capital "C") to everyone. Asking a 20-something to spend upwards of 60k on a skill set that they may not even like or have a use for is a little stupid, IMO.
I do hope it works out for you. But frankly, I am not worried, and for your minds sake, neither should you. There are a lot of people worse off than you who are doing fine.
I make under 35K a year.
The fact that people think about filing for bankruptcy before getting student loans is a big part of the problem. Accepting a virtual lifetime of debt in return for an education is unfortunate, but it is what people do. Entering into the agreement thinking that you can just file for bankruptcy afterwards says something about your honesty, not the greed of the bank. Once upon a time in America, people took responsibility for the things they'd done.
As to the question of debt for education, you have two choices. You can pull yourself up by your bootstraps and manage to pay it off or whine, complain and hope it goes away. The likelihood of winning the lottery is low, I would recommend putting your nose to the grindstone. The chance you'll find someone to give you the money to pay it off is unlikely, better to suffer through and pay it off. Finding a wealthy benefactor is possible, but would you rather owe a bank or a person? If a person loans you the money, what will they want for their "investment"?
Once upon a time they also sent people to debters prison.
Well, I have been paying. but the amount keeps growing and I am only pulling in 200$ after i pay my debt each month. This will continue for a long time. At this point it looks like I have no future. I am ashamed of myself, not able to pay my other bills. 1600/month is a lot of money if you only make about 1800/month (after taxes).
Exactly how to I pull myself up by my bootstraps. I am already paying the loans back what I can. But I am barely making minumum payments. It looks like I will be paying 3/4 my wages to pay back my loan for the next 20-30 years. I am terrible with money and math, so I have just had an awful time figuring out a workable solution. I work full time. But I don't have enough left over to afford other bills. I understand the importance of personal responsibility. But shouldn't there be regulations in place to keep people from getting this far into debt. Because I can tell you your only options are to live like a slave for the rest of your life or kill yourself when you get this far under.
Get a 2nd job.
And, unless you need it for work, leave internet for a while.
Hold on. $1600 a month to pay off a $120k student loan would only take 6 years seven months (roughly, 6.68 months to be more precise) assuming a 7% interest rate on the loan. That's hardly a 20-30 year commitment.
No. It is minimum payment with consolodated payment payment plan. Otheriwise it would be much more every month.
I'm not going to tell you to think a happy thought, but I will say that there are things that you can live without like the internet. Another thing you should do, if you haven't already, is start buying clothes from places like Target and Wal-Mart. I realize that it's not SouthPole or suchlike, but it's cheaper.
Eat more beans and pasta. You will get tired of them for sure, but you will never be hungry.
Talk to the company you owe money to and explain your situation to them. They will most likely be willing to work with you if they realize that you would still be willing to pay, just not as much each month.
I was in earnest though. I would loan you money if I had it.
I understand the importance of personal responsibility. But shouldn't there be regulations in place to keep people from getting this far into debt. Because I can tell you your only options are to live like a slave for the rest of your life or kill yourself when you get this far under.
If your loans are from the gov't, then there's no incenstive against unwise lending on their part. It doesn't cost an gov't employee his job when the loans they make go bad. They have an "endless" well of wealth--the taxpayers, which is all of us.
If your loans are from the gov't, then there's no incenstive against unwise lending on their part. It doesn't cost an gov't employee his job when the loans they make go bad. They have an "endless" well of wealth--the taxpayers, which is all of us.
Most of my loans are from private lenders.
It's a tough situation that you are in now, friend and speaking as a person that has lived through such things as living off of twenty dollars of groceries a month to having no home at all I can attest to the fact that things not only can get better, but absolutely will.
I'm not going to tell you to think a happy thought, but I will say that there are things that you can live without like the internet. Another thing you should do, if you haven't already, is start buying clothes from places like Target and Wal-Mart. I realize that it's not SouthPole or suchlike, but it's cheaper.
Eat more beans and pasta. You will get tired of them for sure, but you will never be hungry.
Talk to the company you owe money to and explain your situation to them. They will most likely be willing to work with you if they realize that you would still be willing to pay, just not as much each month.
I was in earnest though. I would loan you money if I had it.
Thanks for the thoughtful reply.
I have been cutting back considerably. Unfortunately I do need the internet for my secondary job as a writer (for finding writing gigs, doing research, sending in my articles and getting paid). To cut back we are moving in with a family member this month (she is sick and needs assistance so it is a good situation for both her and me and my wife). We have been living mostly on dry foods it seems (beans, pasta, rice, powdered milk etc). My clothes are all old, and when I have had to go shopping we go to a store at the mall where everything is under 10 dollars. I also left my job in the city, the commute was too exepnsive, and found one in walking distance. The problem isn't so much that I have to pay lenders back each month. It is the amount, and that it constitutes a huge portion of our income. I have no problem paying back what I owe over time, or even paying the lenders back in labor if that were possible. The issue for us is, we were hoping to have kids at this point. I had miscalculated how much I would be paying back each month after refinancing and consolidation. I went back to school in order to be able to get a better job so I could raise a family. The lenders told me that I was eligable for loans that covered living expenses, which would allow me to go to school full time in stead of part time. I have always had a very bad head for math, and just never been good at contracts. But the way it was explained, it sounded like we would be paying 300-400 for a few years after I graduated. When I did graduate, I found that my degree only opened doors to jobs in the 30-33 K range. I now have a white collar job, and a degree, but I have found I am not well suited to white collar work. So advancement in the company doesn't look like a possibility now. I am a disorganized person, and low energy. Would probably make a fine academic, but am horrible at meetings and spread sheets (I have already been fired from one job for my performance). I am now making the equivelent of 11 dollars an hour, with opportunity for bonuses that push me into 13/hour. So me and my wife's dream of raising children, looks like it will need to be delayed by about 20 years if nothing improves (at which point we will be 50). I am considering bankruptcy, if only to stave off our credit card debts (which are not that big, but still large enough to make things complicated). Our only option is to file "undo hardship"(I believe that is what it is called) on my student loans, but from what I hear, that is a long shot. This has all been complicated because I have been in poor health for the past 2 years. Even with health insurance, I have had hefty medical bills for specialist appointements, screenings and procedures. I have also been very depressed, and just started something called Paxil to see if it can help my energy and mood.
Keep a budget diary with both In and Out. Have someone check the maths if you're unsure (and even if you're sure).
Evaluate your writing work: how much do you spend on each assignment - both money, internet, printer ink, phone calls, transport and tax as well as how much time you spend. How much do you actually get paid for each assignment? Be ruthless and decide if it's worth continuing or if your energies would be better spent elsewhere.
Look for better paying markets for your writing work. Recycle your research (so if you do an article on SLR camera for example, use the material and pitch a spin off either to the same magazine or others) or whatever.
Keep a diary of appointments, use Outlook at work, ask colleagues for help with spreadsheets etc.. read a book on Excel (from the library), take notes at meetings, avoid faffing around on the internet (what I'm doing right now). As your work improves ask for a raise - even a $200/mth net raise would double your spending money.
Could you work at your old university? Why not apply to some academic jobs?
If you are low energy try to get some more exercise, even walking or jogging. Avoid late nights and drink no more than two cups of coffee a day. Make sure you get some vit C and iron (especially as you cut back on your food bill).
Sell stuff. Is there anything you can sell on ebay?
What does your wife do? How could she improve her salary? If she's not working, is there anything she could do (even part-time)?
DON'T have kids until this is sorted out. A child is a full time responsibilty - are you able to provide a full time loving environment as well as working?
DON'T despair. You can pay this off.
-Does your wife work? Because you should both be working 90+ hours per week (2-3 jobs each). Yes thats hard and leaves no free time, but thats the hole you're in. It still leaves around 11 hours a day down time for sleeping and eating however.
90 hrs/ wk x 50 wks/ yr x 2 people = 9000 hrs per yer x $10/hr (a relatively reasonable assumption) = $ 90,000/ yr. Assuming a 1/3 tax rate (I don't know the American rate but that's what I've heard); You would have an after tax income of $60,000. You can live ok on $20,000 (maybe less but let's not get too optimistic) per year which leaves $40,000 a year to repay debt. Including allowances for a reasonable rate of interest you should be debt free in 3.5 to 4years.
There's some light at the end of the tunnel. You'll both have to work yourselves very hard, but it's possible.
This doesn't consider medical issues and I know that in the US you don't have government funded health care(which sucks), but unless you are on death's door you'll have to suck it up and work all the time, because this is the most important thing. You're literally working for your freedom.
-Cancel all of your credit cards, you don't need more debt.
-don't pay for anything that isn't essential. You should cut: TV, cellphones, etc. Nothing that isn't a basic human need. Even then you should cut back: put a brick or two in the toilet tank to cut back on water consumption, wear clothes more than once before washing(until they stink), cut daily showers(bathe when you stink), only flush the toilet after #2, turn off lights, lower the thermostat and put on a sweater. You get the idea.
-You will be bored, as no money should go to entertainment, zero. Deal with it, borrow stuff from friends if absolutely necessary.
-Don't buy presents for people. Explain your predicament to others, they should understand.
-If others are still buying you presents ask for cash.
-Whenever you have extra money put it towards the principal of the loan and not the interest.
-Don't give up.If you need encouragement I am sure there are many here who can help.
I don't want to sound callous here (and I might) but here's my advice:
-Does your wife work? Because you should both be working 90+ hours per week (2-3 jobs each). Yes thats hard and leaves no free time, but thats the hole you're in. It still leaves around 11 hours a day down time for sleeping and eating however.
90 hrs/ wk x 50 wks/ yr x 2 people = 9000 hrs per yer x $10/hr (a relatively reasonable assumption) = $ 90,000/ yr. Assuming a 1/3 tax rate (I don't know the American rate but that's what I've heard); You would have an after tax income of $60,000. You can live ok on $20,000 (maybe less but let's not get too optimistic) per year which leaves $40,000 a year to repay debt. Including allowances for a reasonable rate of interest you should be debt free in 3.5 to 4years.
There's some light at the end of the tunnel. You'll both have to work yourselves very hard, but it's possible.
This doesn't consider medical issues and I know that in the US you don't have government funded health care(which sucks), but unless you are on death's door you'll have to suck it up and work all the time, because this is the most important thing. You're literally working for your freedom.
-Cancel all of your credit cards, you don't need more debt.
-don't pay for anything that isn't essential. You should cut: TV, cellphones, etc. Nothing that isn't a basic human need. Even then you should cut back: put a brick or two in the toilet tank to cut back on water consumption, wear clothes more than once before washing(until they stink), cut daily showers(bathe when you stink), only flush the toilet after #2, turn off lights, lower the thermostat and put on a sweater. You get the idea.
-You will be bored, as no money should go to entertainment, zero. Deal with it, borrow stuff from friends if absolutely necessary.
-Don't buy presents for people. Explain your predicament to others, they should understand.
-If others are still buying you presents ask for cash.
-Whenever you have extra money put it towards the principal of the loan and not the interest.
-Don't give up.If you need encouragement I am sure there are many here who can help.
If it reaches this point, I would just give up. Simply put I am not young anymore. Neither me nor my wife can handle that level of work physically any longer. She does work 45 Hours a week already. And that appears to be the most her body can handle before breaking down. I have been in poor health to begin with. And cap out at about 50 hours before I get sick. I would have been much better off not going to school in the first place. This was all a very bad idea.
I passed the half-way point in paying off my (relativley small) student loan this month - and, depending on what happens when the fixed-rate period on my mortgage ends in november (again, my mortgage isn't too big) I may start paying off what's left faster
What did you study at uni?
I passed the half-way point in paying off my (relativley small) student loan this month - and, depending on what happens when the fixed-rate period on my mortgage ends in november (again, my mortgage isn't too big) I may start paying off what's left faster
History.
If you work in an office then cutting back on bathing and clothes washing is a bad idea - it looks unprofessional.
Moving to another country is probably a bad idea - start up costs are a lot and it's usually a while before you start making money. Plus you'd have no relatives to live with.
Get some real financial advice - I'm sure there are charities offering debt management services that might help you find ways to reduce monthly payments and manage your loans so as to reduce interest payments. If you can extend some loans for example, you might have more to pay other loans so you knock off your debts one by one (go for the ones with the highest interest rates first).
Background
I work for the British Government, on a pay-scale - it works as you start on X ammount, which goes up by £750 per year, till you reach the top of your scale (takes about 5 years to happen) - this is supposedly to recognise that you are getting better at your job
you also get between 2% and 3% to cover inflation - so you are no worse off
This year, our incraments have been "delayed" - untill we agree to a below inflation %age in our increase. The lawyers are onto it, and it's likley we will both sue and strike. however, it's very frustrating to have to wait!
If it reaches this point, I would just give up. Simply put I am not young anymore. Neither me nor my wife can handle that level of work physically any longer. She does work 45 Hours a week already. And that appears to be the most her body can handle before breaking down. I have been in poor health to begin with. And cap out at about 50 hours before I get sick. I would have been much better off not going to school in the first place. This was all a very bad idea.
Mate, I lost everything in a flood in June. I work 60-75 hours a week in an industry that's seriously flagging now. I know what it's like to give up hope and say it's too much. Don't quit. Keep going. You'll never get anywhere if you stop putting one foot in front of the other. Sure it's going to be rough, nobody is saying it won't. But if you give up, where are you? Better to go down fighting, isn't it?
Thanks for the thoughtful reply.
I have been cutting back considerably. Unfortunately I do need the internet for my secondary job as a writer (for finding writing gigs, doing research, sending in my articles and getting paid). To cut back we are moving in with a family member this month (she is sick and needs assistance so it is a good situation for both her and me and my wife). We have been living mostly on dry foods it seems (beans, pasta, rice, powdered milk etc). My clothes are all old, and when I have had to go shopping we go to a store at the mall where everything is under 10 dollars. I also left my job in the city, the commute was too exepnsive, and found one in walking distance.
No one on the board will really be able to give you helpful advice without knowing the specifics of your circumstances, namely: net monthly income, monthly housing and utility expenses, food expenses, insurance expenses, gas and credit card expenses, entertainment expenses and finally, a breakdown of your student loan payments, identifying which loans have the highest principal and highest interest rates.
I must admit that I'm having trouble getting my head around the $1600 payments constituting 75% of your net monthly income, so I did some number crunching.
You mentioned that you make $11-$13/hour and that your wife also works. I took the mean of your salary and made the (conservative) estimate that your wife pulls in 2/3 of your salary. Based on a yearly work schedule of 2,080 hours each, that is a combined gross income of $41,434. After deducting your student loan interest (which at $140,000, you're going to hit the max. annual deduction of $2500 for a while), taking your joint standard deduction and including your exemptions, your tax burden is going to be about $2,431. I don't know where you live, so I'm going to use 5% for your income level, which at a glance appears to be a good estimate across the nation, so your state tax would be $1447, for a combined tax burden of $3,878. After taking FICA and MC taxes into account, you're looking at a net annual income of $34,386, or a net monthly income of $2,865.50.
Student loan payments of $1600/month will comprise approximately 56% of your net monthly income. While that is not an ideal percentage, it is definitely more manageable than 75% of your income.
Playing around with the numbers a bit more:
Assuming that your wife pulls in a salary equal to your mean salary: student loan payments equal 48% of net monthly income.
Assuming that you and your wife get a $1/hr. raise at the equivalent mean salary: student loan payment equal 44% of net monthly income.
Question regarding tax deductions from your paycheck: do you know what your yearly tax burden is and when you've met it? If not, find out asap. After the paycheck where you finally meet both your federal and state tax burdens for the year, you and your wife should immediately contact your employers/HR department/payroll department and request that they cancel withholdings from your paycheck. Lots of people think that getting a big refund check is better, but always remember that with tax refund money, you're loaning that money to the government without interest. Getting those withholdings back with each paycheck will help free up some room for expenditures.
Do you and your wife both own a car? If so, you should sell one since you mentioned your new job is within walking distance of your workplace.
Check to see if you qualify for loan consolidation, extended payment plans, loan deferment or loan forbearance, or reduced payments plans. None of these are ideal scenarios, and they are all short term, but it might be enough to give you some much needed breathing room. If any of your student loans are variable rates, get them locked in quickly.
Also check to see if your qualify for any loan forgiveness or loan deferment programs. Many volunteer programs provide some kind of partial forgiveness or allow an extended deferment.
Go to a local church. They will often have the resources to help you find a financial planner who will give you free advice.
Faelar
The economy sucks right now so I would suggest staying out of stocks (even the safer mutual funds).
Investing with any extra money would be a good decision. When the economy does strengthen then the average mutual fund should be earning around 8 to 10 % interest. If by this time you have started a Money Market you could transfer the money to a mutual fund.
The down side to this type of investing is that you have to pay into the account some amount (usually $100) each month.
Put all of your extra money into these funds. When you need to pay your bills you can pull what you need out of your account (try not to pull out too much. The more money in the account the quicker it grows). Hopefully this can help get some extra money.
The only thing you need now is someone willing to give you a little over $3,000 (usually the minimum to open up many investment accounts).
Getting organized can always help. You say that you are not good at math and that you are also unorganized. I am good at math and through experience think that being organized helps with math. Being organized also helps out with planning. Having a clean and organized house can help with the atmosphere of your home (a house usually feels as if it has a positive atmosphere if it is clean).
I hope that some of this can help.
Balance proteins. Basically, try to eat pulses with grains whenever you prepare a meal. So for example lentils with rice is excellent and much more energising than either one alone. You can see this principle in a lot of old British staples such as beans (a pulse) on toast (a grain). Obviously you can't live off nothing but rice and lentils, but buying such basic foodstuffs in bulk can make a solid and major basis for your diet. Complex carbohydrates (things that take a while to digest) are good also, e.g. porridge oats made with milk. (I know the US seems to have a terror of fat, but full fat milk is much healthier for you - you need the nutrients). Throw in some fruit such as oranges for vitamin C and you'll be starting the day with several of the bases covered. You'll be surprised what a difference a good diet can make and what you can do cheaply. A couple of Big Macs probably cost as much as enough rice and lentils to feed you for a week.
Of course you probably don't feel like cooking at the end of a long day (or early in the morning), but if you can spare 15 minutes in the evening or ten minutes in the morning, it can make the difference to how you feel each day. And it's cheap.
This advice might not be useful to you, but if I didn't post it then it definitely wouldn't be so I thought I might as well.
Good luck. And organisation is a skill you can learn. Trust me on that - I'm not trying to be hard on you, I just know that it's possible for you to learn it.