WKYC Budget Challenge: Joe and Debbie Gutowski

CLEVELAND -- Our budget challenge continues with Lyndhurst couple Joe and Debbie Gutowski. They have a brand new baby and a credit card debt to keep them up at night.

The Gutowski are both college educated and beyond. They work in jobs they love, but live paycheck to paycheck with mounting debt.

"I think it started when we got out of college and wanted to have the lifestyle we envisioned at a starting out salary that didn't match, Debbie said.

The trappings of a comfortable lifestyle, a mortgage, car payments and three months ago, the arrival of a baby, Adam, leaves them with $20,000 in credit card debt.

"With the new baby in the picture there was a lot of new expenses and we didn't necessarily think how this was all going to play out," Joe said.

Adam's daycare is costing the couple $800 a month -- nearly one fourth of their take home pay.

Other necessary expenses force them to put around $200 on the credit card per month.

"I worry about the credit card debt, if our interest rate will jump in this economy or our credit limit will get cut and we won't have anything to use in an emergency," Debbie said.

The collapse of the banking industry makes it difficult to get a low interest loan.

The housing market has made their five years of equity in the house far less valuable.

"It's all the uncertainty. If something were to happen, if we needed to borrow money, could we do that? If I were to get a job out of state could we sell this house?" Joe said.

Joe and Debbie fall into the fastest growing segment of consumers who aren't living extravagantly, but still manage to spend more then they make.

We'll introduce this couple to financial planner and tax consultant Jim Cunningham.

Jim calls for a cash injection. There is money the Gutowski's didn't know they have.

The solution is coming tomorrow. Don't miss this story coming up on Channel 3 News at 6.