A New York couple with four young children and a live-in parent are drowning in $700,000 of consumer debt, relying on credit cards to get by despite a $240,000 income. Fixed costs like mortgage payments, private school tuition, and property taxes have pushed them into a monthly deficit.

Their financial situation has worsened over five years, with mounting debt from credit cards, personal loans, student loans, and a 401(k) loan totaling nearly $300,000. They spend $4,500 on their primary mortgage and $1,200 on a second property, contributing to their debt.

The family pays $1,300 a month for private school, below the New York average of $22,298 per child per year. The cohosts advised selling the second property to pay off debt and temporarily stopping private school payments to stabilize their finances.

To address similar financial challenges, families should identify fixed costs, free up cash flow by selling assets, and follow a budget until their financial situation improves. The numbers don’t lie, and lifestyle changes are necessary to avoid financial ruin.

The Ramsey Show cohosts provided survival math advice to the struggling family, recommending selling the second property and stopping private school payments to stabilize their finances. Lifestyle changes are necessary to address their financial crisis and prevent further debt accumulation.

Read more at Yahoo Finance: NY mother admits family of 7 is ‘drowning’ in $700K debt, staying afloat with credit cards. What Ramsey Show says to cut