Your Personalized Roadmap to Financial Peace
We understand the weight you're carrying. There IS hope, and this plan outlines clear paths forward.
Taking Control Starts Now
You've taken a huge step by seeking help and securing new income. That $9,000 monthly net income is your powerful tool for change. We know you're feeling overwhelmed, but this report provides actionable strategies to systematically eliminate debt, reduce stress, and build a secure future together. Think of these 5 paths as different routes on a map – choose the one that best fits your journey.
Your Current Financial Snapshot
Net Income
$9,000 / month
Total Debt
~$479,000
(Incl. Mortgage)Credit Card Debt
$55,000
(High Interest Focus)House (Rental)
-$800 / month
(Cash Flow Deficit)Consumer Debt Breakdown:
Wells Fargo
$30,000 @ 24%
Discover
$8,000 @ 24%
Apple Card
$12,000 @ 17%
4th Card
$5,000 @ 11%
Choose Your Path to Freedom
Below are 5 distinct strategies. Read through each carefully, discuss them together, and select the path that best aligns with your goals and comfort level. Remember, consistency is key!
Path 1: Aggressive Snowball - Keep House
Classic Dave Ramsey approach: keep the asset, absorb the deficit, and snowball the debt.
Pros
- Keeps real estate asset
- Avoids selling hassle/costs
- Strong psychological wins (Snowball)
Cons
- $800/mo house deficit slows snowball
- Landlord stress/risk
- Slower progress vs. selling
Key Details:
- House: Keep (Budget $800/mo deficit)
- Debt Method: Snowball (Smallest Balance First)
- Baby Step 1:$1,000 Starter EF (Month 1)
- Monthly Snowball Amount: ~$2,480 (Grows as debts fall)
- Est. CC Debt Free:~18 Months
- Est. Non-Mortgage Debt Free:~32 Months
- Full EF (BS3) Built By:~Month 40
Motivational Boost
Discipline is key here. Celebrate every debt paid off! Visualizing that snowball grow month by month builds momentum. The burden WILL lift.
High-Level Forecast (Path 1)
| Year | Non-Mortgage Debt | EF Status | Focus |
|---|---|---|---|
| 2 | MH Loan Only | $1k | Paying MH Loan |
| 5 | $0 | Full | BS 4/5/6 (Investing, etc.) |
| 10+ | $0 | Full | Wealth Building / Mortgage Paydown |
Path 2: Strategic Sale & Debt Annihilation
Sell the house to eliminate the deficit and accelerate debt payoff significantly.
Pros
- Eliminates $800/mo deficit FAST
- Simplifies finances, less stress
- Provides small cash boost (~$4.8k est.)
- Fastest path to CC debt freedom
Cons
- Forfeits potential house appreciation
- Selling costs eat most equity
- Effort of selling property
Key Details:
- House: Sell (Net ~$4,790 est. after ~7% costs. $1k to EF, ~$3.8k to Debt 1)
- Debt Method: Snowball
- Baby Step 1:$1,000 Starter EF (From sale)
- Monthly Snowball Amount: ~$3,280 (Grows as debts fall)
- Est. CC Debt Free: ~15 Months!
- Est. Non-Mortgage Debt Free:~27 Months
- Full EF (BS3) Built By:~Month 33
Motivational Boost
This is the fast track! Selling is decisive action. Imagine being credit card debt-free in just over a year! Embrace the simplicity and focus on the finish line.
High-Level Forecast (Path 2)
| Year | Non-Mortgage Debt | EF Status | Focus |
|---|---|---|---|
| 2 | MH Loan Only | $1k | Paying MH Loan |
| 5 | $0 | Full | BS 4/5/6 (Started Earlier!) |
| 10+ | $0 | Full | Aggressive Wealth Building |
Path 3: Security First - Sell House & Build Full EF
Sell the house, build a full emergency fund for peace of mind, then attack debt.
Pros
- Significant safety net early on (reduces anxiety)
- Eliminates $800/mo deficit
- Simplifies finances
Cons
- Delays aggressive debt payoff (~6 mo)
- Costs more interest overall vs. Path 2
- Requires discipline switch (Save -> Attack)
Key Details:
- House: Sell (Net ~$4,790 est. $1k to BS1, rest to BS3 start?)
- Debt Method: Snowball (AFTER Full EF)
- Baby Step 1:$1,000 Starter EF (From sale)
- Baby Step 3 (PRIORITY): Build Full EF (~$13k-$26k) using ~$3,280/mo (~4-8 months)
- Monthly Snowball Amount (Starts after EF): ~$3,280
- Est. CC Debt Free:~21 Months (includes EF build time)
- Est. Non-Mortgage Debt Free:~33 Months
Motivational Boost
If anxiety is high, this path offers breathing room first. Building that full EF brings immense peace of mind. Celebrate that milestone, then pivot hard to attacking debt from a secure base!
High-Level Forecast (Path 3)
| Year | Non-Mortgage Debt | EF Status | Focus |
|---|---|---|---|
| 2 | CCs likely clear, working MH | Full | Debt Payoff |
| 5 | $0 | Full | BS 4/5/6 (Slightly later start vs Path 2) |
| 10+ | $0 | Full | Wealth Building |
Path 4: Avalanche Advantage - Keep House
Keep the house, absorb the deficit, attack debt by highest interest rate first (saves most interest).
Pros
- Minimizes total interest paid
- Keeps real estate asset
- Mathematically efficient
Cons
- Fewer quick psychological wins initially
- $800/mo house deficit slows progress
- Landlord stress/risk
Key Details:
- House: Keep (Budget $800/mo deficit)
- Debt Method: Avalanche (Highest Rate First - WF 24%, Disc 24%, Apple 17%, etc.)
- Baby Step 1:$1,000 Starter EF (Month 1)
- Monthly Avalanche Amount: ~$2,480 (Grows as debts fall)
- Est. CC Debt Free:~19 Months
- Est. Non-Mortgage Debt Free:~33 Months
- Full EF (BS3) Built By:~Month 41
Motivational Boost
This path rewards the analytical mind! Focus on the interest saved each month. It requires patience initially, but know you're making the financially optimal choice for debt reduction.
High-Level Forecast (Path 4)
| Year | Non-Mortgage Debt | EF Status | Focus |
|---|---|---|---|
| 2 | MH Loan Only | $1k | Paying MH Loan |
| 5 | $0 | Full | BS 4/5/6 (Similar to Path 1 start) |
| 10+ | $0 | Full | Wealth Building / Mortgage Paydown |
Path 5: Targeted Assault & Snowball - Keep House
Keep house, eliminate the biggest high-interest debt first, then switch to snowball.
Pros
- Tackles biggest interest burden first
- Blends high-interest focus & snowball motivation
- Keeps real estate asset
Cons
- Delays quick snowball wins (~10 mo)
- $800/mo house deficit slows progress
- Landlord stress/risk
Key Details:
- House: Keep (Budget $800/mo deficit)
- Debt Method: Phase 1: Target WF $30k@24%. Phase 2: Snowball remaining.
- Baby Step 1:$1,000 Starter EF (Month 1)
- Monthly Attack Amount: ~$2,480 (Grows as debts fall)
- Est. CC Debt Free:~19 Months
- Est. Non-Mortgage Debt Free:~33 Months
- Full EF (BS3) Built By:~Month 41
Motivational Boost
Slay the biggest dragon first! Celebrate HUGE when that Wells Fargo card is GONE. Then enjoy the faster pace of the snowball for the remaining debts. A strategic win followed by momentum.
High-Level Forecast (Path 5)
| Year | Non-Mortgage Debt | EF Status | Focus |
|---|---|---|---|
| 2 | MH Loan Only | $1k | Paying MH Loan |
| 5 | $0 | Full | BS 4/5/6 (Similar to Path 1/4 start) |
| 10+ | $0 | Full | Wealth Building / Mortgage Paydown |
Paths at a Glance
| Feature | Path 1 (Keep/Snowball) | Path 2 (Sell/Snowball) | Path 3 (Sell/EF First) | Path 4 (Keep/Avalanche) | Path 5 (Keep/Target) |
|---|---|---|---|---|---|
| House Handling | Keep | Sell | Sell | Keep | Keep |
| Initial EF | $1k | $1k (from sale) | $1k (from sale) | $1k | $1k |
| Full EF Built By | ~Month 40 | ~Month 33 | ~Month 6 | ~Month 41 | ~Month 41 |
| Monthly Debt Attack Fund | ~$2,480+ | ~$3,280+ | $0 (then ~$3,280+) | ~$2,480+ | ~$2,480+ |
| CC Debt Free (Approx.) | ~18 Months | ~15 Months | ~21 Months | ~19 Months | ~19 Months |
| Non-Mortgage Debt Free | ~32 Months | ~27 Months | ~33 Months | ~33 Months | ~33 Months |
| Starts Wealth Building (BS4) | ~Month 40 | ~Month 33 | ~Month 33 | ~Month 41 | ~Month 41 |
| Key Pro | Keeps Asset | Fastest Debt Payoff | Max Security Early | Max Interest Saved | Targets Biggest Pain Pt |
| Key Con | House Deficit Slows | Loses Asset | Slower Debt Payoff | Fewer Early Wins | Fewer Early Wins |
| Stress Profile | Moderate (Landlord) | Lower (Simpler) | Lowest Initially | Moderate (Landlord) | Moderate (Landlord) |
Making Your Choice & Moving Forward
Choose Together
Discuss openly. Which path feels most motivating and achievable *for both of you*?
Commit Fully
Once decided, commit 100%. Unity and focus are crucial for success. You're a team!
Build $1k EF NOW
This is Step 1, regardless of path. Sell stuff, cut spending – get it done fast!
Written Budget
Every dollar needs a name *before* the month begins. Track everything. Non-negotiable.
Attack Debt Intensely
Live lean, cut extras. The faster you clear debt, the faster the pressure releases.
Celebrate Milestones
Acknowledge every victory, big or small. It fuels motivation for the journey ahead.
Prioritize Wellness & Peace
This journey is about finding financial peace. As you gain control, stress WILL decrease. Support each other and make time for free, enjoyable activities.
Your Immediate Next Steps
- Discuss this report and choose your path together this week.
- Save your $1,000 Starter Emergency Fund (Goal: 2-4 weeks).
- Create your detailed written budget for the next month based on your chosen path.
- Confirm exact minimum payments and due dates for all debts.
- Start the attack! Make minimum payments on all but the first target, and send all extra funds there.
You CAN do this. We believe in you. Let's get started!
Disclaimer: This report provides hypothetical scenarios based on the information provided. Actual results may vary. Consult with your financial advisor for personalized advice. Forecasts are estimates and not guarantees.