This might sound dumb, but I’m really stuck with my debt. I’ve had credit cards since I was 18 and maxed them out. Right now, I have about $30k in credit card and personal loan debt, and I can only afford to pay the minimums. My mortgage is $1,369 a month. I’m thinking about selling my house, paying off all my debt with the profit, and starting fresh. I do have a place to stay if I sell, and I could try buying another house in 6 months to a year.
I’m 25 and just don’t see a way out of this without doing something big.
Agree with others… it’s probably not the best time to sell or buy a house. $30k sounds like a lot, but if you budget well and cut back on extra spending, you can get through it. Sometimes people think they’re broke but don’t look closely at how they’re spending.
Reeve said: @Zeek
Can you sell one of the cars and get a cheaper one? Also, renting out a room could help cover some of the mortgage.
Yeah, the car payments are really high for someone with that much debt. Maybe sell one, get a cheaper one, and think about getting a part-time job to help pay off the debt faster.
@Zeek
$200 for a phone bill? I pay $25 with Mint Mobile. And why are you paying for two cars? Sell one, switch to a cheaper phone plan, and maybe move back in with your parents if you can. Don’t sell the house—you won’t find a cheaper place later.
What would your situation be if you sold the house? If this is just a temporary problem, maybe try picking up a second job to knock out the debt faster. I also like the idea of getting a roommate.
Reeve said:
What would your situation be if you sold the house? If this is just a temporary problem, maybe try picking up a second job to knock out the debt faster. I also like the idea of getting a roommate.
I owe about $195k, and I could probably sell for $250k to $270k. After paying off the debt, I’d have some money left to save for a new down payment. I’d stay with my parents if I sell.
Check out non-profits that help with debt consolidation. Look for legit ones through government websites. They can help lower your interest and set up a steady repayment plan. I wouldn’t sell the house.
If you can rent out the house and make some extra cash, it could help you pay off the credit cards and loans. Selling right now might not be the best idea.
Grier said:
If you can rent out the house and make some extra cash, it could help you pay off the credit cards and loans. Selling right now might not be the best idea.
That only works if she can charge enough rent to cover the mortgage.
@Reeve
If she’s staying somewhere rent-free, even if the rent doesn’t fully cover the mortgage, it’s still extra money she can use to pay down the debt. She just needs to do the math and see if it’s worth it.
Man, $30k in debt is nothing! I was once $240k in the hole with credit cards, broken leases, and a bunch of stuff I didn’t need. Don’t sell your house. Just chip away at the debt. You can even call and try to settle it for less. They might take $6,500 on a $20k debt. Keep the house.