Hey everyone, looking for some guidance because I feel like we might be spiraling even further into debt.
I’m an E-7 in the Air Force stationed overseas. Family of 4 (wife + 2 kids, ages 6 and 3). We moved OCONUS and my wife had to leave her job, which resulted in about a $45K income drop for our household. Since being here, she hasn’t been able to find a job that makes financial sense with childcare costs, so we’re currently single income.
Here’s where we’re at debt-wise:
~$40K student loans (wife’s)
~$16K car loan
~$8K personal loan due to PCS ($3.5K used for security deposit)
~$15K credit card debt
No missed payments, but the monthly obligations are starting to feel tight, especially with everything getting more and more expensive.
Other context:
– Stable income, but not much margin after bills + debt payments
– No major savings beyond a small emergency fund ($$10K)
– Not currently contributing as much as I should to TSP (10%)
What I’m trying to figure out:
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What should my priority order be for tackling this debt?
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Should I be looking into consolidation or balance transfer options for the credit cards?
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Is it smarter to aggressively pay down debt first or still contribute more to TSP at the same time?
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Any OCONUS-specific tips I might be missing (COLA usage, tax advantages, etc.)?
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Has anyone been in a similar situation after losing a spouse’s income? What helped you stabilize?
I’m not in a crisis, but I can see how this could get worse if I don’t get ahead of it now. Just looking for a solid plan and maybe some perspective from people who’ve been through it.
Appreciate any advice.
E-7 Overseas, Debt Piling Up After PCS
byu/Skaagren inMilitaryFinance
Posted by Skaagren
3 Comments
Stop your TSP contributions, use the emergency fund to pay off the smaller debts leaving you 1-2K left, consider selling the car if you cant pay it off in a year, and throw away the credit cards. Depending on your location, you could have trouble with your wife getting a job. I’ve been in Korea since Sep 24, and my wife cant find a job due to locals taking 95% because of SOFA agreements. You might be able to put a hardship deferral on your wife’s student loans, but I dont think it is likely.
I was in a similar boat in 18-20 as a SSgt, and had to go scorched earth to get 70K paid off. Im an E7 now, and assuming we are similar in years, that 10% in your TSP is 500-700/month.
Go talk to the free financial counselor you have access to.
Go after the high debt first, probably the CCs. Call all of your debts, tell them you are active duty, and ask them to apply the SCRA to your accounts, technically it is only for pre service debts, but lots of CCs will still drop your interest rate and even refund a lot.
Drop tsp to 5% (hate to say this) only until cc debt is gone. It will eat you.
Go talk to the free financial counselor you have access to.
This is my opinion, not financial advice.
Navy, so not an expert on how the Air Force does things, but did you use you GVCC to move? That should get some reimbursement. I’d look at watching some Money Guys or Dave Ramsey videos and see what would work for your family. You have tricare I’d tackle the highest interest rate debt, and use some of your emergency fund. A debt consolidation loan can work out depending on what interest rate you get if the amount of interest paid overall would be less than what you’re paying now. If you’re staying somewhere with good public transportation or are able to ride a bike or walk to work I’d ditch that car. That saves a ton of money.