I am a divorced woman about to turn 60.
I am a teacher and make decent money, however, it is taking all of my take home pay to keep everything paid each month.
I am not able to put money into my retirement or go see my grandkids.
Three years ago I bought a home. At that time I was completely debt free. The house payment, upkeep, utilities, car, and credit card payments take all of my money each month.
I pay $1,200 a month on the credit cards and less than half goes on the principal. I have $48,000 in credit card debt.
Last year, in 2012, I paid over $8,000 in interest alone on the credit cards. If I sold my home I could make enough profit to pay off about 35–40K depending on how much I could get for the house. I am an honest person and believe in paying what I owe.
Should I sell? And if not, what should I do?
Yes, sell the home. It is clear that the home is not affordable for your situation. If you bought the house and were debt free and now unable to save for retirement and nearly $50,000 in credit card debt, you can’t afford the house.
You are currently wasting valuable time and throwing money away that you need to save for an upcoming retirement.
I realize you are an honest person and believe in paying for what you owe but that does not change the fact you are racing towards eating dog food in your retirement years unless you get this back on track.
You might want to consider settling some of your debt with the cash you will have on hand after you sell in order to wrap the debt up as quickly as possible and get back to saving for retirement ASAP.
Sell the house and then get back to me with how much debt you have then and cash from the sale.
Look to rent a smaller place that fits within your budget and future income.
Please post your responses and follow-up messages to me on this in the comments section below.
You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.
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