“Dear Steve,
We are 7 years from retiring ( we are on target to have 5K a month in retirement annuities)
Owe 110K on house
Have 68K in college loans for 4 kids to pay off
Have 28K in credit card
Have 25K in 2 car loans
The wife and I bring home 102K combined each year
I would like to get out of debt NOW
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I say, sell the house, use the proceeds (about 40K) to pay off bills, move into an extended stay facility for a year (900/m all bills paid) and pay off remaining amount in a year.
THEN, rent a place or make down payment on house and save like crazy until retirement.
Alan”
Dear Alan,
You know, that actually sounds like a reasonable approach. It gives you a year of sacrifice but accomplishes the goal you’d like to achieve. Let us all know how it goes and how you feel about taking the big plunge later.
