Dear Mary: We live in Nevada and have a second home in Arizona. My husband wants to sell the Arizona property and then the proceeds from the Nevada property must be used to pay off our credit debt, car loan and home equity loan – a total of about $ 165,000.
I disagree. I think we should rent a home in Arizona to get an income and be grateful in the future.
My husband is worried that if we can’t rent it, we won’t be able to manage our debts other than paying off two mortgages.
Dear Lorna: Suppose you sell Arizona property and pay off debts, and then you were right to realize that the property you rented was easy and that your esteem could lead to murder.
Even if you forget about the return on investment, you are in debt, and you have a home in Nevada.
But suppose you don’t sell, and he realized he was right: you can’t rent a house, and you can’t keep up with both mortgages plus a large uninsured debt load. In that case, you can lose everything. You have to see that as a real opportunity.
My advice is to see this as an opportunity to show great respect to your husband by trusting in his decision.
There is something for you too. This allows you to take care of your needs and feel financially secure.
It looks like a win-win. However, before you do anything, be sure to check with a tax professional to find out what tax event, if any, may result from the sale of your Arizona home.
Dear Mary: I am a pilot for a major airline and have a $ 70,000 credit card and mortgage. I’m not proud to say we don’t have any savings or emergency funds.
Soon, I’ll get crazy about $ 40,000. Should I use that to pay off unsecured debt? – Stan
Stan: If you did that, you still have $ 30,000 in debt with no collateral plus a mortgage. It looks so much better, for sure.
But what happens next month, when you have an unexpected emergency, or next year, when you lose your job? You’ll feel like you have no choice but to go for credit card rescue and you’ll get back $ 70,000 before you know it, or probably more.
My advice is to use this misfortune to fund your emergency fund, which is money equivalent to three months (six better) living expenses, which many know as an emergency fund.
Save it in a savings account to earn a certain amount of interest. Now, live as you can, and attack that $ 70,000 nut with all the taste you can.
Put spending on a strict diet. Knowing that you are not sitting on the brink of financial condemnation will give you the courage to endure short-term sacrifices.
All you need is perseverance and determination.
Mary invites questions, comments, and tips at EverydayCheapskate.com, “Ask Mary a Question” or c / o Everyday Cheapskate, 12340 Seal Beach Blvd., Suite B-416, Seal Beach, CA 90740.