Brief Synopsis: Worked a non-career ‘job’ from age 18 to 39(2016). Was always worried about retirement, so I went all in and paid cash for a 300k house/acreage in a rural area in the event SHTF. Fortunately, I got a career federal government position two years ago. Huge pay cut, but a career position, purchased my military time back, pension, and healthcare now bridged to Medicare days. Looking to retire as soon as possible. First tour in my new position is in New York and I shopped school districts first for my children. Wife and I knew it was going to be rough, but we figured all will get back on track when we move on. It has been rougher than we thought, we are now 41k in debt.
Current Finances: $5500 take home a month. $3000 rent $700 car Loan at 1.79% ~$500 utilities $550 to pay CC $150 to pay personal loan at 14.25% $0 in savings account.
Debts $28500 Card at 9.5% $8100 Car at 1.79% (year of payments to go) $5000 Personal Loan at 14.25%
We’ve got three more rents to go here then we head to a new area in the country where take home pay will increase by administrative promotion and rent will be around $2000 a month.
To get us through the final months here and to get us settled in our new location, I thought of either getting a home equity loan for $45k at 8.5% and consolidate all my debts. Monthly payment would be just shy of $1000 for five years, but pay more when able. Or, get a $10k Loan from my TSP and pay that off ASAP.
The equity loan scares me because I hate that we don’t ‘own’ the place anymore. Rate seems high too, but at least all the debts will be consolidated.
The TSP Loan seems good because I feel confident when I depart the NYC area, I’ll be able to pay that off in no time, but I’ll still have that monster CC and personal loan to kill. Also, I’ll be losing out on any returns if the market does well during my payoff period.
What say you? $45k Home Equity or $10k TSP Loan?
Submitted May 06, 2018 at 02:49PM by 41yearold41kdebt https://ift.tt/2rnS2oZ
