NY mother admits family of 7 is 'drowning' in $700K debt, staying afloat with credit cards. What Ramsey Show says to cut

Core Insights - A New York couple is facing significant financial distress, accumulating approximately $700,000 in consumer debt despite a combined income of $240,000 before tax [1] Group 1: Debt Accumulation - The couple has relied heavily on credit cards for unexpected expenses, leading to a reliance on debt to manage monthly costs [2] - Their debt includes nearly $98,000 in credit card debt across 10 cards, a $28,000 personal loan, $132,000 in student loans, and a $43,000 loan against a 401(k) [5] - Minimum monthly payments total about $3,000 before housing costs, indicating a significant financial burden [5] Group 2: Lifestyle and Expenses - The family's financial situation has deteriorated over five years, with their household expanding from two adults to seven, resulting in increased fixed costs [3] - Major expenses include $4,500 per month for their primary home mortgage and $1,200 for a second property, which is currently being sold [6] - The couple also pays $1,300 per month for private school tuition for their young children, which is below the New York average [7] Group 3: Structural Financial Issues - The family's financial struggles are attributed to a structural lifestyle mismatch, where recurring expenses exceed their income [4] - The carrying costs of the second property have significantly contributed to their debt accumulation over the years [6] - The average U.S. homeowner incurs additional costs of about $15,979 per year in property taxes, insurance, and maintenance, which compounds their financial challenges [6]