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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.
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.
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 .
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.
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
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.
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
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
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?
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..
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