My friend at work is open to advice and since the start of 2014 has made huge inroads towards FI (as far as I can see)
He is currently considering selling an asset to pay off personal debt , stats as follows:
-Rental property: worth 260-270k, loan of 215k, rent equals mortgage payment plus taxes and other costs.
-Personal debt (accumulated crap, nothing to show for it): 50k
-Savings account: 5k
income 4k per month, saving 2k per month 1k for the 50k debt and 1k for everything else (also as a bonus, lives rent free with family).
now this guy turned a new leaf from the start of 2014, brings lunch to work, moved out of the rental (was too big for him) and moved in with family to save etc. but is considering selling the property to clear personal debt, and become debt free and therefore save 65-75% of his wage each month.
He is 30 with no dependants, my thinking is he is doing so well by saving right now - he can put it into the personal debt and still keep the rental home, afterall 3k per month should clear that loan within 2 years depending on the interest rate ( it has to be 13-17% knowing the lenders).
He is keen to start investing though, getting a better quality rental and investing in vanguard funds. I cant help but think he already has a rental so why go through the costs and hassle of getting another in 1 - 2years when he saves enough for a down payment, then again he would love to clear the 50k debt, thats killing him...