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Maxed Out 2008-05-27 13:09:40

Maxed Out: Clean Slate Wedding


This episode of Maxed Out features Tabetha and Greg, a couple in their mid-twenties planning to get married in exactly 14 months. The only problem is that the two of them together equal one big financial mess. Tabetha has a growing pile of debt that is currently at $34,000 on top of her mortgage, while Greg can't offer any advice because he knows absolutely nothing about managing money. He's a debt-free student living at home and gets an allowance from his parents, and he and Tabetha hadn't ever talked about money until recently. They don't want to start their lives together with old financial baggage, so in order to have a clean slate wedding they call in Allison Griffiths to work her magic. Find out how she helps the pair when you read more.

Tabetha admits that if she has money she spends it and is teetering on the edge of not being able to pay for anything anymore, but with this knowledge she still contributes $300 each month to a vacation timeshare. Allison takes a look at Tabetha's big money picture and concludes that she's spending 60 percent of her income on housing between her mortgage and timeshare, when the maximum that should be allotted to housing is 30 percent.

Allison also discovers that between the current $34,000 debt, the estimated $15,000 cost of their wedding, and the amount of debt plus interest they'll accrue during the 14 months until their planned wedding date, Tabetha and Greg will start their new marriage off with $67,500 in debt. She instructs Tabetha to get organized so that she never misses a payment, tells Greg to cut financial ties with his parents and get a $500 limit credit card to establish some credit, and encourages them to sell the timeshare so their debt would instantly be cut in half.

Tabetha and Greg are on their way to a clean-slate marriage and have a much better understanding of what life together will entail. They were lucky to get their reality check before the wedding instead of entering their new lives together with almost $70,000 in debt.

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