debt destruction: going too far?

**greenskeeper** · 08-06-2011, 05:13 AM

Do you like the house? Can you save for retirement/emergency fund/pay down debt while making the mortgage payment? A house is a "good" debt to have 90% of the time. Nothing wrong with paying the minimum on it every month, although I advice to pay a little extra because even $20/month can knock years off the end of the loan.

**cschin4** · 08-06-2011, 06:18 AM

It depends on how you want to live your life. I HATE debt of any kind. Subsequently, i am totally debt free, own everything, house, car, no cc bills (paid in full at the end of the month each and every month).
But, what about your rental? Could you sell that and pay down your mortgage? I personally think owning rental property is a risky proposition and one which could easily tank someone.

**onlyoneuno** · 08-06-2011, 08:22 AM

The house has a rental unit (in-law). This is actually why the electric bill is so high. The idea of saving so much money just seems so appealing to me. I just want to make sure I'm not going overboard.

**naomibatac** · 11-09-2011, 11:58 AM

Debt destruction going too far?

Have you also considered talking to a debt counselor? Sometimes we see things differently and a counselor could tell us our actual status. This way, you will be guided as to what extent should you work on regarding being debt-free.

**riverwed070707** · 11-09-2011, 12:06 PM

So if the rental and the house go together, you would really be only saving $1000/month becuase you'd also be losing $500 income, correct?

What's your debt like? How much do you owe and at your current snowball rate when will it be paid? Without knowing your specifics, I think you've taken some pretty good steps and I'd probably keep the house, keep snowballing and once your debt free except the mortgage, save up enough to refi and maybe even switch to a shorter term loan.

**snafu** · 11-09-2011, 12:27 PM

Do you not qualify for mortgage refinancing that the politicians announce nearly daily on TV? Do you like your house enough to continue for the five years it will take to see the housing market return to firm foundation? This isn't the 1st time housing has devalued but it is the 1st time it was irresponsibly used as a cash cow. you don't want to over react to cause yourself more financial damage.

**bjl584** · 11-11-2011, 09:28 AM

I would say it depends whether or not you plan to stay in your house long term. You have to live somewhere, so if you like your house, then stay in it. You've done a fine job of cutting back so far.

I don't really view a house as an asset per say, because you need a place to call home. If your mortgage is affordable, and if you have a plan to get it paid down, then I don't see a need to sell and downsize. It doesn't look like the house is burying you financially. Is the house preventing you from saving for retirement? If not, then I wouldn't move.

**BuckyBadger** · 11-14-2011, 07:54 AM

Do you like the house? What are your goals -- you may be all hell-bent to get out of debt, but then what would you do? Buy another house? Rent for the rest of your life?

And, possibly most importantly, does your wife want to live in an apartment or stay in the house?

**maat55** · 11-14-2011, 02:53 PM

Your house is way too much of your income. I would sell FSBO.

**LivingAlmostLarge** · 11-15-2011, 05:04 AM

$2k mortgage of $5k income too much. But $1500 ($2k-$500 rent)/$5k is about 30%. So it's more manageable. I think staying and refinancing would be a good idea

debt destruction: going too far?