We own a house which we want to sell and move elsewhere. We have probably $120,000 equity in the house. We owe one year’s lease payments on a work van at $700/mo. and then owing $18,000 at end of term. We owe $40,000 in credit card debt. I keep switching cards to save on interest.
My husband is a floor layer and the paychecks are not regular. I am a stay at home mom with two small boys. Last year he grossed about $55,000.00. We’re barely keeping up and rely on credit cards when there’s no pay to cover necessities. It’s getting worse with the recession.
Should we sell the house and pay off all debt or use that money to buy another house? I am thinking that if we pay off all of our debt we won’t have enough money to buy another house, or at least a house that isn’t a dump. I don’t want a big mortgage and I don’t believe we’d be approved for one anyway. I estimate that where we are moving a decent modest house will be about $225,000. Our mortgage now is about $90,000.00.
So should we pay off debt and end up renting or having a bigger mortgage? Or should we put all of our money in another house and pay off the credit cards the long stressful way as we have been doing?
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The AnswerShould We Sell The House And Pay Off the Credit Cards? - Yvonne by Steve Rhode