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Maxed Out: Best Friends in Debt Together

Oct 20 2008 - 12:30pm

We're familiar with money breaking up marriages, but this episode of Maxed Out [1] featured another type of relationship threatened by debt: best friends. Christine and Meredydd bought a condo together so they could build equity and eventually get their own condos, but their debt is taking away from any equity and Christine says in six months they might not be friends if they keep fighting about money. These two 27-year-olds spend an insane amount of money on restaurants and take-out each month and both admit that it's their biggest spending weakness. Find out how much they're spending on food when you .

Financial guru Allison Griffiths breaks down each woman's monthly spending and discovers that Christine's $70,000 salary isn't getting her anywhere because she's spending $1,478 on restaurants and take-out each month, while Meredydd's $58,000 salary is causing her to come up short because she spends $1,944. Their grocery budgets for the month barely exist — Christine spends only about $16 on groceries and Merredydd spends about $45. Allison calculates Christine's total debt to be $57,800, which is 20 percent more than Christine had estimated. Merredydd's debt is $33,641 and $3,200 of that is owed to Christine.

When Allison reveals that after five years of spending recklessly on restaurants and take-out they'd have eaten their way through $205,000, which is about the size of their whole mortgage. This hits home for them and they diligently follow Allison's instructions to take a two-week detox from restaurants, only take $20 out in cash each week, open a joint account for monthly bills, and to decide whether or not to sell or refinance their condo. They decide to refinance and will be able to pay off their personal debts while keeping the condo, and Allison gives them a spending maintenance plan so they don't go back to their old ways.


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