Which makes more sense and why?

Question

$125K debts (includes $65K fed. student loan)
$183K price house was bought at
$256K current value of home
$163K owed
400-500-ish credit score
No to refinance
No to loan
Which would you choose?
1: Sell home, buy down, but in the $100K range in better/more desirebale neighborhood, to free up monthly cash that would normally go to hi mort. pmt. Not as able to pay a lump sum to student loan, but at least make payments, (while interest accrues), to this and other debt.
2. Buy a smaller, less comfortable condo. Cash purchase in $80K-$90K range, pay lump settlement to student loan, and make larger payments, (compared to the 1st scenario), to other creditors. Still own property, but may have trouble selling it in a few years.
Thank you. Your responses will be very helpful.

Walker T, (the "God-fearing" "Go to church every Sunday", who doesn't have the brain cells, bravery or emotional intelligence to discuss homosexuality with you daughter): What exactly have you learned each week? What would your church leader say about your mean response? Wait, I'll put in your terms: WWJD? I thought the Bible taught kindness and compassion for your fellow man...hmmm....It never fails to amaze me how hypocritical "Christians" are, but have to say, I was expecting at least one mean-hearted and un-helpful response from idiots who have no claim to anything in thier lives but that their "God-fearing". Give me a break.

Answer 1

I think option 2 work out okie
1/put the roof over your head first free and clear
2/instead making the mortgae payment, using the money paying off the other debt. forget the uncomfortable thing for couple years,you could rent out after you decide to buy the new house after clearing all the debt.

in the mean time, save 2000-3000 in cash in case your cars broke down or your house need to be fixed that you do not use the credit card cycle again. spend less than you make, control the urge to spend like the queen of England
Learn how to invest the right way, set aside 10-15% to your 401k retirement plan. get the used dependendable car to drive all the debt paying off. You are already learn the hard way.

Yes you could learn invest by yourself. it is your money, you should know how to do with it. for starter check this site out.

http://www.pathtoinvesting.org/index_fla...
http://www.stockcharts.com
http://www.streettalklive.com>... university. a lot amount of information. It will serve you well
I accumulate in good amount in 401k at the young age.I could share with you. when consider invest in stock market. you should consider basic 3 things:

fundamental analysis==(economic data,finincial health, management, business model, competetion)>>what to buy

technical analysis==(chart+indicator)>> when to buy

Sentiment/schycho analysis==>>mood of investor, Contrarian point of view.
Market cycle===>> check out book Trader Almanac by jeff hirsch will give you inside stuff
When you combine 3 thing, It is one of the powerful knowledge goinh with you for the rest of your live

At the age of 32. my 401k is amassed 71,000.00 and 30000.00 in taxble account. by follow simple rule

Answer 2

I have said before that, life is stranger than anything we can say about it, anybody that does not recognize this fact is either asleep or in denial, which is no insult, it takes a strong jolt to wake us from our slumber and see how ridiculous the world is where we have words like ( normal ) I have not solved the ultimate riddle, but there is a distinct awareness, or rather a feeling, that I am on the right path, at the right place and at the right time. The basic rules within the matrix of the material world are understandable by many different beliefs, but most provide a landing field for the complacent, and many stop there. If we permit ourselves an open mind and dare to know, sometimes reason will speak. May Kali prosper you always!

Answer 3

I'm not a financial expert, so take my advice for what it's worth, but...

Between your home loan and your 125k debts, you have 288k in debts. At 5% interest (I imagine you're paying atleast that), your paying $14,400 a year just in interest. If you have a lot of credit card debt, you could be paying over 30k in interest.

Wouldn't it be better to sell your home and rent? Assuming your numbers are correct, you could pay down all but 32k of your debt. I don't know what city you live in, but in most cities you can get a pretty nice apartment for about $8k a year, which is far less than the current $14k your losing in interest.

Then once you get your debt to zero, you could start looking at houses or condos again if that's what you want.

Answer 4

If you can sell for the $256 you pay off the $163 you still owe on house that leaves you with $93. Is that right? The $93 needs to then pay off the $125. I am not sure what I would do but the $93 left would pay all but $32 off. I would pay off anything that had very high interest first and go from there. The more you pay off the less you owe every month. I think your best bet would be a credit counselor, they can tell you which is the best way to go. Good luck.

Answer 5

I think plan 1 is preferable if you can live economically afterwards until you clear your debts.
Living in a better neighborhood will be better for your moral and you will have a better class of neighbors.
Also properties in better areas appreciate in value to a greater extent.

Answer 6

The option that amkes the most sense is to stop buying things on credit that you obviously can't afford.

Answer 7

Do the first one or you will always look back and wonder if you should have, especially if the condo is not something you really like anyway.

Answer 8

Cut up credit cards, sell house, RENT. 2nd job. 3rd job? Sell cars, buy junkers. Visit DaveRamsey.com, his FREE advice helped me change my life.

Answer 9

wow that sucks hun, good luck with that........ find a guy whos rich :S lol