My husband is 51 and I am 59. My goal is to retire at 62. We have a 1st & 2nd Morgage. Also, over 100,000 in credit card debt. We are living week to week to make all payments. We have an offer on our house. The offer would pay off the mortgages and about $45,000 of our credit card debt. There is no way we could pay off the credit cards by the time I want to retire. We are willing to rent at this time and we would be able to pay off the balance of credit cards in about 3 years as long as I work till I am 62. We have no problem renting because we may move to another state in the future.
What do you think of us selling our house and paying off the mortgages and partial debt?? Please advise.
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You know, this is one of those rare times when you might want to consider a debt settlement approach with your proceeds from the sale. The bad thing about debt settlement is that it will result in bad credit and a potential tax liability but the good thing is that you would be able to settle a majority of your credit card debt with $45K. Not all creditors might agree but for those that don’t, you can just keep making payments.
So why will this result in bad credit? Two reasons. First, the amount of debt that is forgiven by the creditor will show on your credit report as a bad debt that was written off. The second reason is that to get to the best settlement offers you will need to go 90 days or more past due to get them. Silly as it sounds, that’s just the way it is.
The advantage of settling the debts is that it could significantly eliminate most of your debt and with the remaining time you would have a much better chance of paying off the rest.
Now, I strongly suggest that you shop carefully for a debt settlement company, you can start with this link. Make sure you find one that would not charge you up-front fees. If you need some help screening them after you talk to a few, contact me below and I’ll guide you through the process.
Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.
What Do You Think About Us Selling Our House And Paying Off Part of Our Credit Cards? - Susan
by Steve Rhode
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