Which Option Is Best To Resolve Debt?

I have approx $75,000 in marital debt,(now divorced) with approx $100,000 in equity in my current home, ( I must satisfy this debt per divorce decree a.s.a.p)
I plan on selling this house in less then 6 months (relocating) I have a credit score of approx 620. rolleyes
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Comments(5)

  • jpchapboy29th December, 2004

    Sell your house, pay debts, then use the other 25k to buy a new home. that is easy.
    OR use the 25k to start investing in realestate. that is more than almost any of us started with, so it could go a long way. spend a lot of time on here and learn what would be the best way to invest it.
    good luck
    josh
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  • TimeIsNow29th December, 2004

    If you can afford to pay a higher mortgage payment, or perhaps attain a room mate - you may be better off getting a line of equity to pay off your debt.

    You may not find another property to meet your needs with the $25K you'd have left over, in addition property prices continue to rise at a greater level than the the cost of living. It is your best investment.

    You're emotionally drained, & probably feeling helpless, but this is a small mountain, prepare mentally and you will overcome. grin

  • hyundai29th December, 2004

    If these debts are currently past due I would recommend trying to negotiate the amounts with the debt holders for less than the full amount. The home equity line would work very well for this.

    Good Luck,

    Andrew

  • flacorps30th December, 2004

    How much of the marital debt is the ex-spouse having to pay? If I were you, I would pay mine down in lockstep, percent-for-percent with the ex spouse. If the Ex-spouse has $100k of the marital debt, when ex-spouse pays a dollar of it off, you pay $0.75. Or if they have $50k, when they pay $.50, you pay $.75. Just make sure you keep up with ex-spouse, and ex-spouse doesn't lag behind you.

    Ideally, your source of money for this is a HELOC.

  • sweetladysuccess2nd January, 2005

    Thank you all for your time and advice, now it's time to live and learn. Happy New Year!

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