This month’s makeover: Clovis and Lisa Blackwell

This month’s makeover

Who: Clovis and Lisa Blackwell

Income: $55,500

Assets: $15,000 in savings, anticipated inheritance this year of $110,000

Debts: $270,000 mortgage on a two-bedroom condominium in Pasadena, $24,000 in Clovis’ student loan debt

Recommendations: Stop deficit spending immediately by cutting out hefty charitable giving, and take opportunities to increase income. While taking care of the couple’s own child, Clovis should baby-sit other children as well as pursue other employment. Lisa should work through the summer and complete continuing-education studies to secure a salary increase next year. Try for a loan modification, but don’t count on it. If unable to get a modification, wait until the second half of 2011 to sell the condominium in hopes that the value recovers to $250,000 from its current estimated $220,000. Use $20,000 of the inheritance to pay the shortfall to the bank and keep credit scores intact. Use $60,000 of the inheritance for a down payment on a $300,000 home with a yard. Buy only after increasing income and with $20,000 in savings.

About the planner: Sandra C. Field is a fee-only financial planner and founder of Asset Planning Inc. in Cypress.