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