We have 50k in vehicle debt with a baby on the way, what should our next steps be
My wife and I are expecting our first child in December and are in a bit of a tough situation with vehicle debt. Please understand that I want to do the right thing and have been trying but am in a bit of a tough spot. I understand we have made some mistakes and are at the point where we’re trying to fix it. To give the whole picture we make about $6k/mo take home currently we have no other debt besides our vehicles ($1000/mo) and our mortgage ($1650/mo). Both of our vehicles are financed, her car we owe about $12k on ($360/mo) and it’s worth about $15k, my truck was a recent purchase and we owe about $39k ($670/mo) and it’s worth about $32k (pretty upside down because it’s a recent purchase, and yes I put money down and do not have any add on’s). The total monthly payments between both vehicles is about $1k. I want my wife to be able to stay home when the baby comes but I need to get rid of these vehicle payments. If she stays home our income will decrease from $6k/mo to $4k/mo. We paid off over $20k in debt over the past year and we have about $10k in savings and as much as I would like to use it to get out of the hole with the truck I just don’t know if it’s smart to blow that much money before having a baby. What should we do? I would just pull the trigger on getting rid of both and buying 2 cash beaters but we still need reliable transportation because we live 6.5 hours from family so frequent travel is going to be happening. As of now I am just going to keep saving and figure it out as it comes but I’d like to have a game plan I just can’t make up my mind as to what to do.