I have $100.000 debt on cards. should I sell property worth about
$200.000.
2006-12-21 01:30:02 · 6 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
Depends, how bad do you want out of debt and stop being a slave to the lender?
If your answer is "I WANT OUT OF DEBT!" sell, sell, sell. Once you are out of debt you can always save money and buy more property.
I suggest reading The Total Money Makeover by Dave Ramsey or Financial Peace Revisited by Dave Ramsey.
2006-12-21 02:34:49 · answer #1 · answered by mldjay 5 · 0⤊ 0⤋
Why would you sell the property to pay off credit card debt? I am assuming that the overall interest payments associated with the credit cards are overwhelming. However, if you are currently making the payments, then there is another option. You could refinance your property, take out a mortgage on the property. The current mortgage rates are in your favor and you can take the money over a longer period of time, with most financial institutions allowing for pre-payments on mortgages, this would allow you to repay faster if needed.
In addition, the selling of the property could face additional tax due to capital gains.
If the property has room to carry financing, then I would go for a refinance on the property, carry the money over an extended period of time (reduce the P&I payments), keep the property (which should continue to appreciate in the future), and pre-pay the financing back where I could using prepayment options on the mortgage.
2006-12-21 02:02:24 · answer #2 · answered by Anonymous · 0⤊ 0⤋
It could make sense. However, make sure that you are not putting yourself into a position to pay substantial capital gains tax.
You may wish to speak with a credit counselor. $100,000 in credit card debt is a high amount. It may be that you used this for business purposes, but nonetheless it is a relatively large debt to owe as a possibly high interest debt.
2006-12-21 01:35:22 · answer #3 · answered by Anonymous · 0⤊ 0⤋
probable - however the human beings who supply such based contract loans are generally ripoff deals who in basic terms supply you approximately 30 or 40 cents on the dollar. Plus, in case you do it, your month-to-month money would be long gone (and in case you proceed to exist those precise now, what's going to you do whilst they are long gone). you need to talk with the guy who's providing you with the month-to-month money and notice in the event that they'll refinance with a usual financial company and pay you off. a minimum of you stand a extra constructive risk of having paid in complete. in any different case, quit utilising your credit enjoying cards thoroughly so it does not worsen, boost your earnings in different procedures (2d activity, and so forth.) and pay each thing you may on the cc balances, and attempt to make it go away that way.
2016-12-15 05:31:32 · answer #4 · answered by Anonymous · 0⤊ 0⤋
is it the home u live in ur selling or another property, any more background info would help before i can answer fully...
how did you get into the debt
are you employed/salary?
any dependents
age
2006-12-21 01:34:28 · answer #5 · answered by yasir k 2 · 0⤊ 0⤋
Sure.
2006-12-21 01:34:39 · answer #6 · answered by Hydrox Z 1 · 0⤊ 0⤋