some harsh comments - but I didn't exactly give much of a background.
Too much consumerism and I caved to the pressure of buying a house when the third child arrived! We ended up in that house for ten years and I'd have happily stayed there - I did a lot of work to it - even some myself. Problem was not enough income - but I was saving. 2002 priorities were having a reliable car and fixing what needed to be fixed in the house. The wife wasn't allowed to work and I was stuck in my job - unless I wanted to go back to England. Which I didn't.
In 2008 I started to make strides into paying it all of - the market when to crap but the investing has been a hobby of mine. I still finished the year up. by 2010 all the debt was dropping.
By 2011 we had no car loans, minimal credit cards and the mortgages were back under the price we bought the house at.
I'd tried several times to work with the bank to merge the mortgages or reduce the rate but they wouldn't do it.
For 2011 I was going to cash in the last of my savings, pay off the 2nd mortgage and refi the first - as well as finishing the credit cards. Would have been a total debt reduction of 104k in just over 3 years.... and debt payments dropping from 3,500 a month to about 1k for the mortgage.
Was I heading in the right direction. Hell yes - and more.
Being laid off in 2012 killed me - the nearest appropriate job I could find (I'm in Reinsurance) was in Florida - 1400 miles away. I'd been out of work for 5 months by then.
High on the hog? yeah - then killed most of the debt...
I had to move and sell the house - tried my best to do so but the net I could sell it for was under the mortgage value - which meant it was worth less than 10 years previously!! way to go. Killed me to leave it - the only house my youngest had known, the only one I'd owned. It was our family home and I'd put my heart and soul into it.
I tried everything to talk to the bank about a short sale (and early enough meant that I'd have sucked it up and used my savings to pay the short fall) but as my accounts were up to date they wouldn't consider it. I paid that mortgage for 10 months. and the rest of the bills for another year and paid someone to maintain it. While the bank refused to talk to me I lost two buyers that would have covered most of what I owed. a year later it sold for 40k less and the bank took the hit. It killed me to walk away and I had a year of them harassing me about it when they had the chance to get it sorted out earlier. the stress was unbelievable and took a toll on my health.
It was a bit more than walking out on a debt.
since 2000 - even with the loans and cards and everything I saved and invested and had a net wealth that increased every year apart from 2012 - 5 months without a job will do that to you.
When I had a chance to buy a house later I took the chance and cashed in some of my pension. Given that rent was 18k a year for a house I worked out that it was worth it - even with a 25k tax bill. Own out right, no mortgage.
as for the credit card debt - that was for renovation the house -the one that's gone up more in value than the tax bill.. and I do have new, energy efficient appliances that will last me a long time.
The debt there is being address - mostly in cash when I can know where we are after our trip to England. the rest I can move to a 0% card until I have more cash - right after we save!
and the trip to England for a wedding - that's happening. be nice to see the kids grandparents too as they are too fraile to travel and we don't when, if ever, we'll see them again. If that's a bad thing well tough. Family first.
my question was about the remainder of the debt - pay, or do a heloc as a cushion or any other ideas?
. I could be close to FIRE within 18 months. not shabby for someone who had a 5 month job loss and a short sale last year.
