| Saturday, August 18, 2007 |
| Money Makeover: Heather and John Franklin |
 The Kansas City Star article: Money Makeover: Couple seeks to carve their way out of debt profiles Heather and John Franklin - a former California couple now living in Kansas. While the cost of living is much cheaper in Kansas, they are still spending more than they earn a year here - adding to their growing credit card debt. THE SUBJECTS
Heather Franklin, 26; John Franklin, 24.
•Occupations: Medical center office specialist; mechanic.
•Assets: Cash, $1,500; retirement savings, $1,300; personal property, $55,000; vehicles, $25,000; residence, $150,000.
•Liabilities: Credit cards, $15,830; other personal loans, $5,715; medical bills, $3,150; auto loans, $23,000; student loans, $34,500; mortgage, $126,230
•Net worth: $24,375
THE QUESTION
“How can we get caught up with our bills and get our expenses together to start saving?”
THE ANSWER
“Reducing your big tax refunds will almost correct your negative cash flow. But cutting expenses and paying off credit cards will be critical for longer term success.” Labels: Money Stories |
| posted by Boston Gal @ 10:02 PM *
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| 3 Comments: |
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The article comments that they're saving too much, but I don't see the evidence of that on their list of assests.
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How can a couple with so much debt even think about adding another child to their family?
Unless mom's employer is real generous, she'll lose several month's worth of income after having the child. Add to that the costs to raise him/her. I just don't get it !
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They supposedly count $55,000 worth of personal property in their net worth?? I'd love to know what that consists of. By most people's reckoning, they probably have a negative net worth.
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The article comments that they're saving too much, but I don't see the evidence of that on their list of assests.