Ok, please be nice. I’m honestly nervous to post this. I bought a very tiny house very cheaply in 2016 in a neighborhood that has great schools. It was literally the only house here that I could afford. I had two kids at the time. Fast forward a few years and we added another kid and sold that house at the end of 2020. Given the crazy housing market that house that I bought for 69k sold for 140k and I was able to find a bigger place for 128k and put 35k down on it. That left me with apx 30k net profit (numbers here are rounded). I added that to my savings and have around 45k saved. Now onto the question.
I have a small 1600 loan (originally 6k) for a home improvement project on the old house. A car balance of 12k (originally 16k) and a credit card balance of 2k.
I’ve been seriously debating taking a chunk from savings and paying off the small loan and the ccs and maybe even my car. I’d still have money left over BUT it would be a lot less. I was extremely poor up until recently. As luck would have it the selling of the old house also coincided with a promotion and substantial raise for both my husband and I. For two kids who grew up dirt poor being able to pay bills and get groceries feels like cloud nine.
I think I’ve grown so comfortable with the safety net I won’t allow myself to let any decent sized amount of it go.
Should I just wipe out the debt? I’d literally only have my manageable house payment after that… but also less money in the bank.
Submitted April 09, 2022 at 11:54PM by Objective-Listen-827 https://ift.tt/OuhXGSo
