Kevin and his wife make decent money and wonder what's the best way to use their big shovel to beat their debt!
QUESTION: Kevin and his wife have a home worth $160,000. Their first mortgage is $132,000, their second mortgage is $18,000, and they have $13,000 in credit card debt. They also have car and student loans. They’re just getting started on the baby steps. They make $85,000 a year. Should they sell their house and pay off all their debt?
ANSWER: Do not sell your house - your house payment is not the problem. You should be able to pay off about $30,000 in one year. You need to cut your lifestyle and get on a budget.