Suze has some tough love for this struggling couple. After looking at Tammy and Tim's finances, Suze says the couple falls $2,000 short each month. With property taxes, utilities and the mortgage payment together, Suze estimates it costs at least $3,000 a month to live in their current home.
Suze's suggestion is a harsh truth for Tammy and Tim. "I love you enough to tell you what you need to do to not only save yourselves, but to save your children so there's enough money then to buy them health insurance, for them to have life insurance," Suze says. "You need to sell your home."
Tim says he's concerned about putting his house for sale in a depressed market. "If you had just been honest a year ago, two years ago, that you couldn't afford the mortgage payments—you couldn't afford the lifestyle that you were living—you would not be in this situation here today," Suze says. "If you get rid of the house, you will start to live an honest life without lies. You'll start to make more money. You'll feel better."
Tim and Tammy want to know what their next step should be. "Let's put the house on the market to sell. Let's see what it should be priced at. Talk to your bank about possibly having to do a short sale and just see what happens from there. That is our first step toward honesty," Suze says.
It won't be easy, but Tammy says they're ready. "Whether we've been naïve or not, it's a reality, and now we're finally seeing the light and realizing that it's a change we need to make," she says.