| Monday, August 27, 2007 |
| Money Makeover: Eric Riester and Stacy Madmon-Riester |
 The Kansas Star recent Money Makeover: Lenexa family finds credit card debt tough to curtail profiles Eric Riester and Stacy Madmon-Riester who are struggling to get out from under over $62,000 in credit card debt. THE SUBJECTS
Eric Riester, 34; Stacy Madmon-Riester, 42
Assets: Cash and cash equivalents, $4,615; retirement savings, $16,220; cars, $10,000; home, $142,040; personal property, $50,000.
Liabilities: Credit cards, $62,410; student loans (currently in deference), $45,000; mortgage, $132,015.
Net worth: - $16,550 They tried following the Dave Ramsey "Debt Snowball" plan when the credit card debt was around $42,000 - obviously that did not work too well for them. Just like the last Kansas Star Money Makeover couple, this one seems to have a large dollar figure for "personal property" which may not be very realistic. Either that or giving myself just $5,000 for everything I own is vastly under valuing my personal property...
As for the couple and the likelihood that they will have made significant progress on their credit card debt in the year or year-and-a-half until the husbands graduate school loan bills start to come due... The Mom is going to have to get better at saying no to the kids and stop using the children's "needs" as an excuse to go shopping with the credit cards...Labels: Money Stories |
| posted by Boston Gal @ 2:11 PM *
* Subscribe to Boston Gal's Open Wallet |
Links to this post:
|
| 2 Comments: |
-
I think that $5K is a pretty low value for your stuff, although I'm speaking as a person who owns a lot of media and some older pieces or furniture, which are easier to resell than clothing and other less fungible things.
I do think that people tend to value their personal property at its replacement value, though, because that's what's often used for renters' and homeowners' insurance, which may cause problems when calculating their net worth. I personally can't imagine having stuff that would sell on craigslist for $50K, unless there's a boat or other big ticket item(s) to factor in.
-
These people sound like exactly who the Dave Ramsey plan is for. Cut up the credit cards and spend less than you make. Not that hard.
And if their 50K number is accurate (DVD collection? boat?), sell it!
|
| |
| << Home |
| |
|
|
I think that $5K is a pretty low value for your stuff, although I'm speaking as a person who owns a lot of media and some older pieces or furniture, which are easier to resell than clothing and other less fungible things.
I do think that people tend to value their personal property at its replacement value, though, because that's what's often used for renters' and homeowners' insurance, which may cause problems when calculating their net worth. I personally can't imagine having stuff that would sell on craigslist for $50K, unless there's a boat or other big ticket item(s) to factor in.