U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Economics
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 06-03-2019, 12:44 PM
 
Location: Dallas TX
14,993 posts, read 21,635,335 times
Reputation: 22099

Advertisements

Quote:
Originally Posted by aridon View Post
Sell the house and downsize your life significantly. Get the debt paid and dump your payments into investment accounts. You have the income to fix this assuming you get serious about it but fact is you're well behind given the income.

That means you've had debt issues in the past and I promise you're not alone. Many people with decent incomes get caught in the spending trap. Anyway, keep the credit cards at home, don't buy expensive cars and once they are paid off drive them until the wheels fall off and take that payment and invest.

Now is the time to reduce your expenses and get that side of the budget in order so you can have enough to not be forced to work you're entire life. There is time but you'll need to be aggressive in both your savings, cost cutting and investments.

You should also look at your 401k investment options and ensure you're getting a decent return and not stuck in some low return fund that you barely looked at when you signed up 30 years ago.
Absolutely have had debt issues in the past.

We don't ever have expensive cars.

We can't downsize house wise in our area (staying in the school district) that are available. This is what is really making me question it. The houses are all the same size.
Reply With Quote Quick reply to this message

 
Old 06-03-2019, 01:12 PM
 
2,486 posts, read 1,407,292 times
Reputation: 5163
Quote:
Originally Posted by veuvegirl View Post
Absolutely have had debt issues in the past.

We don't ever have expensive cars.

We can't downsize house wise in our area (staying in the school district) that are available. This is what is really making me question it. The houses are all the same size.
Updated my post a bit. I'd suggest re reading it.

You'll need to do some math and see where things stand vs your expectations. You have the income and time to make adjustments and come out of this well. If you choose wisely you'll go into retirement with good expectations and understand the consequences of any decisions you make.

That really is the most important part. If you are aware of the consequences and where you'll stand now, you can make the necessary decisions. If you wing it and ignore what the math says, you may or may not be surprised or happy.

Good luck. You're not alone in this situation, that I promise you and you certainly have the means for this to end very well.
Reply With Quote Quick reply to this message
 
Old 06-03-2019, 01:31 PM
 
Location: Dallas TX
14,993 posts, read 21,635,335 times
Reputation: 22099
Quote:
Originally Posted by aridon View Post
Updated my post a bit. I'd suggest re reading it.

You'll need to do some math and see where things stand vs your expectations. You have the income and time to make adjustments and come out of this well. If you choose wisely you'll go into retirement with good expectations and understand the consequences of any decisions you make.

That really is the most important part. If you are aware of the consequences and where you'll stand now, you can make the necessary decisions. If you wing it and ignore what the math says, you may or may not be surprised or happy.

Good luck. You're not alone in this situation, that I promise you and you certainly have the means for this to end very well.
Thanks, appreciate the advice. We've been winging it too long and need to figure out some serious budgeting.

We will probably move out of this area completely in one to two years, once my daughter graduates. We just don't know where. The market is good right now, so we were jumping on the idea of selling, getting out of debt and downsizing our bills.

If we choose to do that we'd be saving about $1000 a month and have money to invest. That is appealing. However, we'll more than likely be moving again in a couple of years. That is why I am waffling .
Reply With Quote Quick reply to this message
 
Old 06-03-2019, 01:36 PM
 
8,251 posts, read 9,001,576 times
Reputation: 6620
Quote:
Originally Posted by 22003yo View Post
Keep the house if you like it; selling, renting and buying again will easily cost you $20k between fees and moving costs. You make enough where you can tackle that CC debt within a reasonable amount of time. What are your car payments like? That would probably the first thing I would get rid of depending on age/equity/payments.
I tend to agree with this.
Reply With Quote Quick reply to this message
 
Old 06-03-2019, 02:24 PM
 
Location: Myrtle Creek, Oregon
12,067 posts, read 12,397,565 times
Reputation: 19022
What is the rental inflation rate where you live?
Reply With Quote Quick reply to this message
 
Old 06-03-2019, 02:45 PM
 
Location: Dallas TX
14,993 posts, read 21,635,335 times
Reputation: 22099
I just Googled it, looks like 2.8%.

This is how I am weighing it out:

Pros--

Market is strong, will sell for a nice profit
Will be out of debt
Approx $20K to invest
Anywhere from $500-$1000 in savings each month depending on the housing availability
Truly do not know where we could cut costs to save more money

Cons

Moving is a pain in the butt
Won't like the place we live as much (this is a certain as there are no houses on the market to rent in the area I want to live)
Will pay for moving twice since we won't be here the long haul
Reply With Quote Quick reply to this message
 
Old 06-03-2019, 03:51 PM
 
Location: Dallas TX
14,993 posts, read 21,635,335 times
Reputation: 22099
A bit more info...

We can refi and save $600 a month if we refinanced.
Reply With Quote Quick reply to this message
 
Old 06-03-2019, 03:59 PM
 
Location: Omaha, Nebraska
7,166 posts, read 4,086,181 times
Reputation: 17910
I can't see how selling your house now makes any sense. Wait until your daughter graduates and you're not tied to that school district, then sell. In the interim, get serious about planning where you want to live for the long-term, and get serious about budgeting. Then when the time comes to sell, you'll be ready.

Last edited by Aredhel; 06-03-2019 at 05:06 PM..
Reply With Quote Quick reply to this message
 
Old 06-03-2019, 04:52 PM
 
1,913 posts, read 453,884 times
Reputation: 3247
Quote:
Originally Posted by veuvegirl View Post
My husband and I are debating how to best move forward. He has had a tumultuous few years of employment causing us to go into a tailspin of debt. We now (knock wood) seem to be stable.
On a scale of 1 to 10, how stable is your current stability?

Quote:
Originally Posted by veuvegirl View Post
We currently own our home, absolutely love it. We put it on the market and stand to make approximately $70k if we sell.
Is that $70K after having paid for whatever closing costs & real estate commissions? After federal & state income taxes on the gain?

Quote:
Originally Posted by veuvegirl View Post
If we sell, we'll be completely out of debt with the exception of our car payments... We gross $13,750 monthly.

Thoughts? Advice? Need further info?
What are your ages? How's your health? Do you have health insurance? How old is your car?
Reply With Quote Quick reply to this message
 
Old 06-03-2019, 04:54 PM
 
1,913 posts, read 453,884 times
Reputation: 3247
Don't sell your house. Refi the house. Take that $600/mo reduction in monthly mortgage & apply it to your CC debt.

You said "you need to get another car." I suggest really looking carefully at that. You might be able to make do with Ubering and Lyfting.

You might need to have a tough conversation with your now-high-school aged daughter regarding her plans for college -- specifically that you cannot pay for it.

You mention you suck at budgeting. That's OK; many of us do. Some don't even know where to start. Do you need help with that?

Last edited by RationalExpectations; 06-03-2019 at 05:06 PM..
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply

Quick Reply
Message:


Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Economics
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2019, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top