We have about 60k in debt. 16k of that is credit card debt. Our house payment is $1,037 per month including property tax and insurance. If I lost my job we would be in big trouble. Our combined income is about 118,000 annually. Our credit rating is 778.
Should I sell my house and use the 40k equity to pay off most of the debt and use the extra money to pay off the rest quickly? When I get debt free I could stock pile until we have enough to purchase a home again. I was thinking that at least if I lost my job we could then live off the income of my wife until I found a job.
Well that’s certainly a plan. But only you can ultimately tell if that’s a good plan for you or to schedule an appointment with a debt coach to work through it in more detail.
What I get out of your question is that for whatever reason you are concerned you are currently living beyond your means or your job appears to be uncertain. It sounds like you are in a bit of a panic mode rather than an evaluative mode.
I just don’t want to see you make a rash decision based on an emotional fear. I’d rather see you execute a great plan that is most likely to achieve the goal you want to achieve.
If the goal is to reduce obligations, pay off debt, and live within a reasonable income then your plan could be the best approach for you. But rather than give you the green light I think you should meet over the phone with
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.