We are not in the US, but our local personal finance sub is very quiet. As per title, we have around 275k equity in our house and 106k debt including 40k student loan, 30k personal loan used for renovations/ repairs, 20k car loans, 16k credit card debt racked up due to illness and job losses. We've done major improvements to our home and our area is booming.
My husband and I now have solid jobs ($80k and $50k per annum) and while we are getting everything paid, there is nothing left and some months are very tight.
We are only paying minimum amount required on the credit cards and the student loan is never ending!! (Borrowed $26k, have paid back $29k and have $40k owing thanks to interest)
Does it make sense to sell the house and pay down all debt, freeing up $2200/month for savings? After a year, we would have $190,000+ saved for deposit to build a new house. We could put that in a term deposit for a year and rent. Or ride it out until the personal loan and car loans come to their natural end in 2 years, then snowball the credit cards?
I'm leaning towards selling up, clearing the decks and renting for a year, but we've worked damned hard for 14 years of home ownership and feel guilty throwing in the towel. I worry that we'll sell too soon and our house value will go up even more and we'll miss out, but realise that the debt we have is smothering and devastating.
Tell me I'm crazy not to sell?!
Submitted July 22, 2018 at 06:31AM by paintonglass https://ift.tt/2uHzHEZ
