If you sell the house, then the big positive is that your debt goes from $383,000 to $118000. You would not end up with much cash--if you can sell it for 300 and you owe 265, then after all the fees and commissions, you might end up with around 11,000 cash, right--you sell at around 300k and then have maybe 8%, or 24k, and you pay off the 265, and you end up with 11,000.Originally Posted by dmc
Originally Posted by Florence
Sell the house, the cars, the kids, and anything else you can get your hands on. Seriously. Both of you get some kind of second income. You know the live frugal drill and start paying off debt. At 59 with no retirement savings, this is an emergency. Get everything but the mortgage paid off and get some emergency savings in place before you start retirement savings. IMHO.
This, or you may end up living with your kids.
So you could use that to pay off both credit card and car.
That leaves you with medical debt of 7, plus the student loan debt.
It's certainly one option. If you could get forgiveness for the student loans you might get something like half forgiven, since you have to make 10 years of payments? Don't know the specifics on your loan, but you could figure that out.
I guess question is how important is the house for you? Where could you live more affordably, and still get to work and sustain your health?
Which stressors are worse, the debt, or the uncertainty about where to live?
I guess that is why the advice about sell everything has to be weighed against personal circumstances.
On other hand, that is how we got out of debt--but it was a better sich because we owned house outright and used 30k to pay off debt and bought foreclosure with remainder.
Maybe get a realtor in to give you a good estimate on the house? I don;'t trust Zillow, but I guess it's a good place to start.
Reply With Quote