I apologize ahead of time if this is too simple a matter for this Stack Exchange. My mother has been in a sticky financial situation for a while now, and I was hoping to get a little bit of help, and possibly some pointers for her and myself for how to get out of this.
My mother is a single mom, she's turning 50 this summer, and she has about $60k in school loans from the college I attended. I have some myself, these are just the parent plus loans. She also has a remaining payment of about $10k to my sisters college. She's done in a year.
She lives on her own in a 2 bedroom apartment, and she works full time. She actually makes somewhat decent money, but with all of her expenses, it's very difficult.
My mom pulls in about $4,400 a month after taxes. As I said, very good money in today's economy. However, she owes about $4,800 a month (just did the exact calcs). This includes but is not limited to (monthly):
College payments - $900-$1,000
Rent - $1,625
Gas - $200
Food - $100
Expenses - $50
Bills (phone, gas, electric, cable) - $325
Debt Repayment (long story, but she pays no interest on a large debt that was sold from a credit card company to a private company, we already tried to fight it) - $350
Health Insurance - $331
Car Payments (ins. and loan) - $650
That's about it. Right now, I loaned her about $8k to pay some back debts off, and basically pre-fill her account for a little while. So every month, even though she is spending about $400 more than she makes, she has about $4k of the loan I have her left to offer that extra until we can figure something out.
I have setup a budget for her so she is never spending more than the amounts listed above, but those are the bare essentials, and she is still making $400 less than she owes per month.
She still has a $3k debt to our aunt, that she COULD re-pay now, but then the amount I loaned her would go down to $1k, and in a couple of months, she'd be screwed.
Does anyone have any idea of how she can work herself out of this? She's getting a TINY bit back from taxes, and she works extra hours in the summer time so that should give her an extra $300 a month or something, but that's still not enough to get out of this.
My sisters tuition will be over (the $500/month), in about a year like I said, but everything else, there's really no end in site for a while. She can't count on getting cheaper health insurance from her job, and to move out of her apartment would take a while because the area is so high in demand, and she needs to stay close to where she works otherwise gas/tolls are ridiculous in NJ.
Any help would be incredibly appreciated. She's an extremely hard worker, who has been living off of a $50 expense for a while now. She deserves at least a chance at making something work for her, being a single mom and all. Thanks for any help ahead of time.