Esther said she may find a second job during the holidays to help pay down the debts, even though she and her husband see their children only about two hours a day during the week. "That's a real concern for me," she said, but a second job is "an option we should look at."
Michael said Stark and Gallaway's input has given him a road map.
"This provides me with some answers," he said. "Now I need to do some more investigation."
He's confident that he and his wife will be able to help pay for their children's college educations. Still, he hopes that at least one gets a scholarship.
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This month's makeover
Who: Michael and Esther Maston, both 37
Income: $110,000
Goals: Decide whether to keep or sell investment home in Las Vegas. Save for 6-year-old triplets' college educations and their own retirements. Pay off debts. Stay in their home.
Assets: $2,700 for their children's education. Pension and other job benefits.
Debts: $578,000 in two loans on Walnut home and $328,000 in two loans shared with two partners on investment property. $8,000 in credit card debt. Esther's $15,000 student loan.
Recommendations: Reduce debt load by renegotiating terms on the Las Vegas home, selling it or allowing it to go into foreclosure. Renegotiate terms on the Walnut home's second mortgage to reduce the 9% interest rate. Pay down higher-interest credit cards first and then the student loan. Keep track of every purchase for the next three months to see what other expenses to cut from budget. Consider taking second jobs to pay down debts. Send children to junior colleges for two years before moving them to four-year institutions to cut college expenses in half.
About the planner: Brad Stark is a fee-only financial planner and principal with Mission Wealth Management in Santa Barbara.
