My wife and I have a hard question. Before I ask it I would like to give some background on it.
We have a near 2 year old
Home worth 250k owe 100k on it
Savings of 18k
Student loan debt or 84k
I'm recebtly unemployed doing side jobs and she works 20 ish hrs a week and somehow we pulled 35k a year
My question is should we sell our house, erase all our debt (including school) and use or 40-60k to buy a new place, or pay off our school debt.
Our house is at a 3.75% apr while our school veries from 6.8 to 5.64%.
We have actually gone backwards in our school debt. 10 years ago it was at 75 ish k, but neither one of us work in our field of study and who knows when that will happen.
Our home has skyrocketed in the market by 120% in the last 5 years, in a hot market that everyone keeps moving into, and the market predicts it won't slow till 2035 ish.
We have the chance to wipe out all out debt and start fresh, or we pay off that debt.
We don't really know what to do.
P.s. we married young (18) from poor families and have never had anything given to us.
With our school loans even if we paid it off in 10 years with interest we are looking at almost $900 a month, our mortgage after our refinance in November is 550 a month. (For 30 years)
I dont want to move into a trailer park, but will for the sake of my family. I never really learned about money and have been learning about the apr over snowball. We snowballed as kids, our only debt now is school and home. I won't to be able to afford everything for my daughter. I worked 2 to 3 jobs in the past to get by, and so did my father. I dont want to have to again, because I want to be there for my kids.
What is your advice? Pay off Apr debt, the home, or sell it to pay everything off and reset?
Edit: if I sold my home paid off all our debt, I would have 40 to 60k liquid. I could buy a trailer home in the park for 30k and would only have living expenses, i.e. save for another home. That said my current apr is 3.75% but current my 84k student loan debt ranges from 6.8 to 5.64%. And even over the corse of paying on them a decade they have increased by 8k since. (I.e. looks like they will never get paid)
Edit 2: to clear things up, a "real" job at fast food would be 400 a week. I do odds jobs and bring in 550 to 700 a week. I dont get benefits i.e. unemployment because if you make more than to 400 you get squat. Also who isn't looking for a job? P.s. been looking for a job since January. I wish I thought about my unemployment status before. Thank you guys for pointing out my income shortage. If only I start looking for one? Who knows. Or maybe take one that would be less than what I'm taking home now as so many of you pointed out.
I hope that clears up jobs
Submitted May 30, 2021 at 10:39PM by shinigamidannii https://ift.tt/3wINCbt
