Should we sell/downsize our house to pay off our debt?

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partgypsy1
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Re: Should we sell/downsize our house to pay off our debt?

Postby partgypsy1 » Thu Oct 11, 2012 8:21 am

If you don't really like your house and are planning to move, now is as good of a time as any, especially pre-kids. I still don't see how a 130K condo costs 600 a month, especially if you include condo fees, property taxes, etc. Still, if you are happy to live in a condo, perhaps indefinitely, and it lowers your carrying costs, that's a good thing.
I would still check out renting versus buying. If renting still saves you money, it may be preferential because 1 less transaction you need to do (selling condo when find long term house), which both costs money and reduces flexibility. But if you find a condo you don't mind living in longer in case you have to, that should be fine.
for example, you sell house, clear 37K (5K transaction costs). Used 2K for closing costs for condo. Put 35K towards 50K debt (new balance 15K).
Say if condo costs 800 a month (still don't know where getting the 600 a month number) clear 550 a month that can be applied to debt. If able to apply all to school debt, should clear remaining balance in about 2 1/2 years.


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