Personal Finance Weekday Help and Victory Thread for the week of March 02, 2020 |
- Weekday Help and Victory Thread for the week of March 02, 2020
- Keep calm and invest on....
- Have you discussed your pet emergency limits with your spouse prior to an emergency?
- My wife wants me to sell our (non-retirement) investments due to COVID-19, what should I say?
- I went from being employed and having decent savings to being unemployed and in debt. I really need some advice.
- Mortgage company volunteering to lower my rate by .5 for free, just because
- Never received hospital bill, but sent to collections anyway. Do I call collections and pay, or write letter and appeal? Worried about my credit history.
- How to not feel guilty when buying expensive things responsibly?
- Suntrust bank is preventing me from making an online purchase based on the merchant having “too highly of a fraud score in the mid 900s”. Can anyone point me to more information on what this score means... as I’ve found nothing.
- What should I do with my money if I want to retire early?
- 24% interest 72 months on $29,000 car
- 30% rent and lifestyle creep.
- I'm 23, graduating university next month, and immediately starting work. I have no sense of the real world and need some help.
- My boss screwed up my taxes!
- I'll be turning 26 at the end of this year. My job will be opening up their healthcare enrollment soon. Do I have to get healthcare now or next year during open enrollment?
- Am I selfish for not cosigning my girlfriend's car loan?
- How to invest $40k
- Will parents find out about bank account through joint account
- I think I made a big mistake buying a new truck!
- Will declaring bankruptcy prevent me from getting student loans?
- 16 years old, won a pair of shoes that are worth a bit of money. (Canada)
- Wife forgot to log 1 day of working for unemployment, now we owe money and penalized 5 weeks??
- We are about $2000 short every month? Worried about being homeless, trying to make the best choice with the little money we have left.
- Parents are in debt and selling their house. Need advice.
| Weekday Help and Victory Thread for the week of March 02, 2020 Posted: 02 Mar 2020 03:07 AM PST If you need help, please check the PF Wiki to see if your question might be answered there.This thread is for personal finance questions, discussions, and sharing your success stories:
A big thank you to the many PFers who take time to answer other people's questions! [link] [comments]  |
| Posted: 02 Mar 2020 05:56 AM PST 6-12 months after outbreaks, the market typically has a solid record... So enjoy those discounted share purchases. [link] [comments]  |
| Have you discussed your pet emergency limits with your spouse prior to an emergency? Posted: 02 Mar 2020 05:42 AM PST Have you had a discussion with your spouse/partner regarding reasonable limits on how much you would be willing to spend for a pet emergency? I realize there are so many factors that would go into such a decision, but I am worried my spouse and I are on completely different pages regarding our limits so I believe it would be good to cover a few hypotheticals to gauge whether there will be a big issue (divorce) in the future. For example, say there was a leg break. Something like this that it is a high likelihood of survival and good life, I probably would spend up to ballpark of $6K. I would not put the dog down for something like that. However, if it was something like epilepsy or cancer or something really serious like that, with a very high dollar amount and more uncertain life expectancy, I still would probably go up to only around $10k max and even that would be iffy. I am worried b/c I believe my spouse would spend every penny we have and would take out a second mortgage on the house if needed (i.e., would spend any amount). If we got into the situation, he would probably resent me forever if I put my foot down or divorce me. So...have you had these preemptive discussions with your spouse? If so, what have you discussed? Edit: To the folks suggesting pet insurance, so we initially had it on all 3 of our dogs but dropped it from two of them because of repeated denials of claims. To this date, they have not paid us any $$ back for anything. They link everything to anxiety (pre-existing condition) for 2 of our 3 dogs, sadly. We had Embrace. Edit: I meant 10,000 limit not $10. [link] [comments]  |
| My wife wants me to sell our (non-retirement) investments due to COVID-19, what should I say? Posted: 02 Mar 2020 12:57 PM PST We've been arguing about this since early Friday morning. I don't want to but she keeps telling me to do it. She wants to sell now and buy when it's coming back up and even acknowledges we'll probably "loss a little" in that gambit. Her reasoning is that we want to complete a kitchen remodel and we probably need around another $15,000 (that we don't have in savings accounts) if we want to pay cash. Help? Am I wrong in wanting to stay in right now? Or should we sell $15,000 worth of VTSAX now to lock in our losses now (with the expectation that it'd be worth less in a month or so)? [link] [comments]  |
| Posted: 02 Mar 2020 06:32 PM PST I'm in a tough situation and appreciate any advice I can get. Sorry for the length, feel free to check out the TLDR, skip the story, and check out the numbers and questions towards the end. TLDR; I went from a $90k job, debt free and $15k in savings, to just over $25k in debt. I haven't found regular employment yet, have past due payments, my bank account has been shut down, and now I don't know what to do. I'm almost 40 years old, have a good resume, and I live in the U.S. My Story First my wife left me, she was an alcoholic and really just needed to figure things out on her own, she's doing better now. Then I was let go from my job of about 10 years when a toxic coworker pretty much forced me out. In the same month, I had a medical situation that ended up taking me 2 years, out-of-work, to figure out (it's stabilized now). That wiped out most of my savings but I got a decent $40k+ part-time job when I was able to return to work. My first serious partner after the divorce moved in with me. I originally didn't think I would get married again, we talked about it, she swore she was 100% serious and seemed genuine, so I chose to make decisions and act with long-term planning. She started an RN (Registered Nurse) program which would bring in $70k+ a year. I agreed to use the last of my savings to buy a $2.5k car and put all other expenses on credit while she did that, with the agreement that she would take over the expenses and I would pay that debt off when she graduated. We could get back to debt free, increase our combined income, and start building a life together. She left me a few weeks before getting her degree, kept the car, refused to give me any money because "that agreement was made while we were together and now we aren't, so I'm not responsible for it any more" and then ghosted me while getting together with the person she said was not why we were breaking up. Shortly after that and a week before Christmas I got laid off again. Big surprise because I had just had a glowing review that said my organizational development work had a huge impact and my marketing work had been great. I believe they were having financial troubles that they were hiding. A few months without work and then I landed a high paying freelance gig that told me it would be long-term and a lot of regular work would be available. I got two months in and they announced there would be no new work for a few months. It's been over 6 months, I was never officially let go (which I believe broke our contract), and they keep saying they aren't issuing new assignments yet. I recently stopped asking. I started job searching after 2 months when my gut said something was wrong. I haven't found regular employment since and have been surviving by selling off my music gear, some other belongings, and getting the occasional freelance gig. I met an awesome new person, we moved to a new place, she's putting all of her paychecks into rent and food, but she doesn't get paid much and it's not enough to cover her and my share while I'm still applying to jobs. Debts and Expenses
What I've Been Doing I don't buy any "stuff" that I don't need, stopped drinking and smoking to save money, cook food for both of us from scratch everyday on the cheap, don't subscribe to any services like Netflix or Spotify, know how to fix household and electronic things that break, and I would say that overall I'm a minimalist who doesn't need much. Almost everyday I spend 8-10 hours applying to jobs online. I'm primarily looking for remote work for a number of reasons; medical issues prevent me from standing for long periods of time or doing physical labor, there currently isn't work in this area that I'm qualified for and pays enough for me to tackle this debt. I only have an Associate's degree but I have a diverse and high level skill set in several industries, a proven success record with great results, a good resume that includes time as Director of Operations, marketing strategy and branding work, project management, I customize my resume to the job and always write a new cover letter. I still apply to jobs I believe I'm qualified for but say they require a BA and have had some responses but no hire's yet. I'm also applying to a few jobs that would require relocation, both in the U.S. and abroad. I think I would need to make at least $60k a year and I would probably need a relocation package if I were to take one of those. Questions
I'm feeling super overwhelmed but I'm pushing through and working as hard as I can to get back to stability. This whole series of unfortunate events and bad decisions has already changed my approach to life, finances, and relationships for the better. I believe failure and learning from mistakes is an important and unavoidable part of living a fulfilling life. My life has had a lot of ups and downs but this is by far the worst it has ever been for me. [link] [comments]  |
| Mortgage company volunteering to lower my rate by .5 for free, just because Posted: 02 Mar 2020 01:09 PM PST My mortgage was sold again but this time the company called me up to offer a lower rate. No closing costs, not appraisal, not changing from Fixed to APR and not wrapping anything else into the mortgage will the same term... When i asked why a company would do this they said "we don't sell our mortgages and by GIVING you a lower rate based off your credit score we find that people don't change company's looking for better rates." This just seem too nice to me. Has anyone else had this happen? I'm checking here because it sounds like a scam but i can't see how... [link] [comments]  |
| Posted: 02 Mar 2020 04:45 PM PST The balance isn't the problem, I'm worried about my credit score/history. Several months ago I stayed in a hospital. I never received a bill or statement from them directly. I knew insurance partially denied it and I was on the hook for some amount. Last weekend I got mail it was sent to collections. It even says the due date was yesterday on the letter. I called the hospital. They said the last statement they sent me was "returned" to post office (i.e. I didn't get it). They said to handle balance with collections and not them. If I pay collections will this appear on my credit score. Should I write an appeal letter and state I never received a statement and the hospital admitted this? What good would that do me? My problem is I don't even know what this amount is for. Is it for my several days of hospital stay, or for a certain doctor or procedure or what? It's not clear at all what the amount I'm being billed is for. [link] [comments]  |
| How to not feel guilty when buying expensive things responsibly? Posted: 02 Mar 2020 09:48 AM PST For the longest time I've wanted a good camera. A good deal recently came up and I'm about to pull the trigger but I just feel guilty. This doesn't mean it's an impulse purchase, I've been researching for half a year, budgeted accordingly, and made a plan to use the camera regularly. I just feel guilty spending this much money on something that I don't need. [link] [comments]  |
| Posted: 02 Mar 2020 04:10 PM PST |
| What should I do with my money if I want to retire early? Posted: 02 Mar 2020 02:58 PM PST Hello, I'm 19 years old and made $77,000 last year. I have $13,000 at Vanguard into a SEP IRA and $12,000 in a Traditional IRA. I am on pace to make almost double that amount this year, and want to know how to invest and save it so I could retire earlier than the usual age. My accountant told me not to put anymore money into my Vanguard account as of right now, so I don't really know what to do. The rest is sitting in CIT bank attempting to accrue interest. Last year I saved about 85% of my income and this year I have saved 91% as well. Any help on what I should do to get ahead on retirement? Thanks. [link] [comments]  |
| 24% interest 72 months on $29,000 car Posted: 01 Mar 2020 08:46 PM PST Last year in November my girlfriend got a 2018 Honda Accord sport 2.0 for 29k. I told her the car wasn't worth it and she should just look for something else that was still nice and 10k cheaper. She refused and got it anyways. Now she pays $770 monthly and today she finally showed me her loan info. It's fucking ridiculous! Can anyone help me figure out how to help her? She Claims she can refinance. I don't know how they got her this bad. She's been making her payments on time and all but 24% is insane.. right?! any advice is greatly appreciated. edit: thanks everyone who shared advice. Greatly appreciated. 💯 [link] [comments]  |
| Posted: 02 Mar 2020 08:08 AM PST Gross Income 42,500. 26 year old. current rent 550 w/ roommates. I need to move and I'm looking at 1 bedrooms. 30% of monthly income is 1,180. Edit. 1180 is 33% of income not 30. I divided by 3. I've looked at some appartments in the 800 range and they are trashy. I'm considering one for $1100. Currently I invest 22% in 401k and stock plan. Then, I auto withdrawl $500 per month to a roth ira act. If I move in to the $1100 I would not be able to contribute to the roth as much. Overall I'd be moving from investing %36 of income to %22-25. Is this lifestyle creep? Or have I just been living exceptionally cheaply in the past? [link] [comments]  |
| Posted: 02 Mar 2020 05:11 PM PST Hey guys, I'm posting here just because I'm feeling pretty lost right now. As the title says, I'm young, naive, have no sense of the real world, and about to start a well-paying job. I have no idea how to manage my finances. I want to start saving but I also want to live comfortably. I'll have a $110k salary, with $200k RSUs over 4 years (Looks like the company should go public in a year or two, but who really knows) , $5k signing bonus. I do not come from a wealthy family so I have no idea how to make sense of this amount. Here are my questions:
I guess what would a good balance of rent vs student loan payments be? TLDR; New to having money, don't want to blow it all but want to live comfortably. How to use Canadian RRSP and TFSA? What's an appropriate amount to spend on rent vs paying of my student loans? If anyone actually reads this and offers any advice, thank you so much. [link] [comments]  |
| Posted: 02 Mar 2020 08:23 AM PST So last year in September, my boss stopped processing our paychecks through an automated service that automatically deducts taxes and started paying us through Paypal. He still, however, paid us the amount we would have made after taxes, so I and my coworker assumed he was paying taxes on our income. We were never notified that we were going to be 1099'd from that point forward. In January, we received our W2's and of course it only accounted for a little over half of what we made. When we asked him about it, he told us "Most people would do a 1099 but those are kind of a pain." Basically, he just wanted us to not report the difference and continue being paid under the table, saving him money. After speaking with the IRS, they sent me and him letters telling him to correct my W2 to the correct amount, and if he doesn't, I'll have to file a 4350 form and basically provide proof of income (this would act as amended W2). My coworker and I downloaded 1099 forms after my boss told us that's what we should do, but now I'm just confused and wondering what I should do. If he doesn't file 1099 on me, then I cant. What should I do? [link] [comments]  |
| Posted: 02 Mar 2020 07:13 AM PST Basically the title. I'm currently under my parents plan. From what I understand, it will drop once I turn 26. However, when that happens I wont be able to select a plan until my job opens up enrollment again in March - April. So do I have to pick a plan now or will my parents plan stay active until my job opens enrollment again? edit: Thank you all for your helpful comments. I'm in the process of talking with my HR department right now in regards to this situation. [link] [comments]  |
| Am I selfish for not cosigning my girlfriend's car loan? Posted: 02 Mar 2020 05:42 PM PST My girlfriend's car is on its last legs (but still drivable), and she wants to get a new one. Her car isn't worth much, I'm not even sure she'll get anything for it given the repairs she needs. She found a used car that she absolutely loves that's $8,500. She has no money saved for this car. At all. With her poor credit, they want her to pay $3-4000 down with ~25% apr. If I cosigned with her with me as the primary. Then she wouldn't need any money down, and the interest rate would be around 5% I really don't want to take on that financial responsibility, but I feel like I am the asshole that won't help her out. I offered to help with her initial down payment, but yet again, I would probably have to pay the whole down payment anyway. It seems the general consensus on this sub is never cosign but I was wondering if there are other options or suggestions on how I could help her. She has fallen on hard times financially, but since we have met she has had plenty of opportunities to save something. She has complained about this car forever so this isn't a new issue. [link] [comments]  |
| Posted: 02 Mar 2020 01:48 PM PST Hi, I'm 55 years old and will be inheriting appx $40k. I won't necessarily need access to the money for a few years and was curious what thoughts are out there about where to park that money so it will earn the most interest on it. [link] [comments]  |
| Will parents find out about bank account through joint account Posted: 02 Mar 2020 03:58 PM PST I'm 18 and have strict parents but I want to keep some money I've earned for myself so they don't touch it. They want to create a joint account with me. I made my own at Bank of America. If they want to do our joint account with BoA will they find out about my checking account? [link] [comments]  |
| I think I made a big mistake buying a new truck! Posted: 02 Mar 2020 02:23 AM PST I think just made a huge mistake buying a new truck. So, I just bought a brand new 2020 Tacoma TRD Sport a few days ago. I got the dealer to go down to 38,000. After taxes, title, gap insurance and some other bonuses it totaled out to almost 45,000. I put a 5k down payment. APR IS 3.22% and the term is 60 months. I'm and RN and make around 50k a year and I have no responsibilities and currently live with my parents. Right now I just turned 23 and my only bill I pay is my insurance, phone, internet, and now new truck bill. My monthly payment comes out to $715 and insurance is $150. It's been a few days now and I feel like I've just made a grave mistake. I was hoping to move out within a year and after doing some numbers in my head I now realize that it's that much harder. Now saving money will be harder and buying a house is now way more difficult if not impossible. I now will be able to contribute less to retirement and savings and I believe now I am starting to panic. After the down payment I only have about 6k I'm savings. What should I do going forward because I'm honestly beginning to worry quite a bit. [link] [comments]  |
| Will declaring bankruptcy prevent me from getting student loans? Posted: 02 Mar 2020 01:21 PM PST Hi there, I've recently been given a huge wake up call and my parents are trying to talk me into moving back home, finishing my degree, starting a different life, and so on. They would support me while I pursue this degree but the only catch is due to my existing consumer debt they think I should declare bankruptcy. My biggest concern (along with 7 years of bad credit reporting) is that this would somehow get in the way of securing student loans to fund my degree in the first place. Would declaring bankruptcy get in the way? Any help is appreciated. [link] [comments]  |
| 16 years old, won a pair of shoes that are worth a bit of money. (Canada) Posted: 02 Mar 2020 01:27 PM PST I won a fairly expensive pair of shoes. What should I do? (16M, Canada) Hi! I'm a 16 year old from Canada and I recently won a pair of the new Travis Scott shoes at a local raffle (worth about 1700). I'm working two jobs at the moment and going to high school but I don't really need the money. I'd like to keep the pair of shoes but my parents are kinda pressuring me into selling them. Ik it sounds dumb to not sell them but truth is I don't really need the money right now, I'm saving enough for university and I'm able to buy myself stuff since I work two jobs. I'd really like to keep the shoes as I've wanted a Travis sneaker for a while. How should I go about this? What should I tell my parents? Edit: Decided to keep the shoes but hear me out. I'm gonna match the value of the shoe so 1700 and invest that money over the next three months. That is money that would be on recreational stuff but instead gonna invest it to cover for the shoes. [link] [comments]  |
| Wife forgot to log 1 day of working for unemployment, now we owe money and penalized 5 weeks?? Posted: 02 Mar 2020 11:48 AM PST My wife got laid off in December and very rarely she'll get a few hours on a Per Diem job. She has to log everything to unemployment for our unemployment checks to come through obviously and I guess she made a mistake for one day? She was pretty adamant that she did not mess up, so she appealed but the appeal was denied. They won't show us what she wrote down and mailed to them either so we can see for ourselves...and now we apparently OWE $450, AND they won't pay us 5 weeks for unemployment. 5 weeks is $1800 (every other week was $900 checks) and we owe $450???? How is it that we are down $2250 over a simple mistake? I feel like we owe the money back we made a mistake on, but to penalize us 5 weeks HURTS. Is there anything else we can do? This is in California. [link] [comments]  |
| Posted: 02 Mar 2020 01:46 PM PST The long and the short of it is, my partner is out of work, we overbought on our house and are almost out of money. Our monthly bills total about $5200 per month (see break-down below). I've recently maxed out my hours at work and can bring in about $2500 monthly. I can work a little more in the summer to bring it to $3000 a month. Partner has been out work for nearly a year. We have been making ends meet by going through his retirement account. He has been able to pick up freelance jobs which bring in around $1000-3000 per month, the work isn't guaranteed though and demand is typically lower or non-existent in the summer. He does not have a degree or any kind of specialized training. Because of the freelance work, which takes around 60 hours per week when he is busy, he does not want to get a minimum wage job. We disagree on this point but I can't make him look for employment. Ultimately, I have reached the point where I am just trying to salvage the situation on my own. We currently have about $2000 left in the bank and (by my calculations) will squeak through this month with $24 leftover. I have about $13,000 in a retirement fund, I believe I would receive about $8,000-$9,000 after early withdrawal penalties and whatever else is deducted. This would close the income gap for up to 5 months (if we just stop paying our credit card bills and maybe skip a mortgage payment) Our mortgage payment is too high. We have only been in the house for 5 years and many things need to be repaired, repairs will cost between ($5,000 and $8,000). I don't believe we can sell without repairing it at this point. The balance is $215,000, When we bought it 5 years ago it was appraised at $240,000. Our market is slightly up but, like I said, there are a lot of repairs including obvious (though mild) foundation issues. Even if we could sell, I'm not sure we can afford to rent a truck and move our furniture, or first and last month's rent. We can't take out a home equity loan, I checked. We could look into refinancing but our interest rate is 4% so I don't think refinancing would lower the payment. I am willing to look into all of this if you all think I should though. A large chunk ($300 per month) is going to repay an escrow overage of $2500 from a change in insurance. If we can pay that off our payment will go down to about $1800 per month. We also now pay a $54 per month late fee because we are a month behind. The lender does not have any kind of deferment system and said that they will begin foreclosure procedures when 2 months' payment are missed. Rental prices in our area vary widely. Because we have 3 children and 2 pets I estimate that we would need to pay between $1000 (if we surrender the pets) and $1800 for a place with at least 2 bedrooms. I'm not sure we'd be approved on my income alone, again, I am willing to look into this option. We have no health insurance either so, if anyone gets sick I don't know what we will do. On the bright side, our cars are paid off. I am starting a new position in August and hope to make an additional $1000 - 1500 per month, I won't know for sure how much until April. We've made some terrible choices to get us into this spot. There are so many things I wish I had done differently. I am so scared for our kids and I just don't see an end in sight. Is there anything I can do to turn it around? Should we pursue selling the house? Put the retirement money towards repairs and then sell hoping to make some money back? Try to eek through? Walk away? Something else? Thank you for any advice. Groceries $800 Mortage $2200 Water $120 Credit Cards $400 Electricity $200-400 Gas $60 Car Insurance $130 Internet $70 Cell Phones $70 Youtube TV $60 Hulu $12 Netflix $14 Urgent care insurance $20 Gas for car $250 Other $400 (mostly stuff for the kids, new clothes from a thrift store, hair cuts, OTC medicine, birthday presents for them to attend parties, school supplies, and various other expenses) Business Expenses $300 *Updating to address some questions and also to thank you all so much for your advice! I need to hear the tough stuff. I know we did this to ourselves, we have let our family down. I am willing to make a change. I am trying to avoid being too specific because I am so embarrassed about our situation. We both rely on the internet for income which is why we haven't cut it. I work from home because our youngest is not school-aged yet. - Regarding the business expenses: I'm not sure, my partner (we are married) handles the finances although he is open about them and I can access the bank account balance. This is what he has listed in our monthly budget for operating his business. Both of the credit cards are under $10,000, one is maxed out, the other is close we have a Home Depot card with about $2,000 on it. I don't know the interest rates. - The gas amount is high, we have a minivan and we have to make a two-hour drive once a week when I work away from home. Sometimes my partner has to meet with his clients. We also drive the children to school every day, too and from the store, friends houses, we were gifted a membership to the zoo as well so we go there about once a week to make up for the stuff my kids can't afford to do with their friends. Typing it all up, it does seem high, I will look into it. - Groceries: We can cut back, I think we are living in denial. I will get it down to $100 per week. - Mortgage: $300 per month escrow payback, $700 monthly interest, $ 700 escrow (which does include PMI) and $450 to principle, plus the $54 late fee. 30 yr fixed loan - I am canceling Youtube TV and Netflix today. - Regarding Other: Last month we spent: $40 on haircuts - all three kids, we do this about every 6 months $15 on new shoes for the littlest due to larger feet, $40 for Girl Scout dues $50 deposit for a summer camp the rest of which is being paid through a donation, $30 for two birthday parties $8 for ice cream $25 Honor society dues $30 for Valentine's and parties $15 for a spirit night fundraiser $10 for Girl Scout cookies $110 for a new tire $30 for an oil change and I set aside $40 to pay the registration for one of the cars next month. We budget this each month and I am in charge of budgeting, I save whatever I can which is currently about $500. This is in addition to the $2000 mentioned earlier in the account. I was not trying to obfuscate this amount, I worry about applying it to debt and bills because I want to have money to take the kids to the doctor, pay for unexpected expenses and whatnot. It's hard because things come up like, my kids having friends over and our friends wanting to get together, school is always needing this and that and I feel like it impacts the ability for the children to maintain friendships. For example, we were invited to a museum near our house with a friend who has a membership, they will get us in but the parking is $10. I am always telling people that we can meet after lunch because I know I can't buy food while we are out. It's still too much. Looking back and trying to justify this expense has really opened my eyes. Everything counts, there is not even $10 that we can waste. It doesn't feel significant to spent $20-$30 here and there but it adds up and, as u/mreed911 correctly pointed out, had we not spent this money each month we would have had enough for a mortgage payment. I will cut down on these. Next month I have one event for $25, my nieces birthday gift which I've budgeted $30 and my daughter's birthday which I've budgeted $50. I have already explained to the children that we are not getting them presents this year, the $50 is to have two friends over, feed them and make a cake. I can get it done for $25 I think. With the reductions, I can reduce the budget to $4676. I will get a realtor to come by and look at the house. [link] [comments]  |
| Parents are in debt and selling their house. Need advice. Posted: 02 Mar 2020 05:31 PM PST Parents in debt and ready to sell their house. What is our best financial option? Parents are in their late 60s and facing poor financial decisions from years ago. They have $200k on their mortgage and are $80,000 in cc debt. Market value for the house is $450k. We are trying to weigh all of our best financial options. I am 30 years old, no cc debt, but have $50k in student loans. My credit score is 750+. We are considering two options: Option A: Parents sell the house. Hopefully get the $450k and, after the mortgage and cc are paid off, are left with $170k to start their new lives. Option B: I buy the house and they continue to live there while paying the monthly mortgage. I take a mortgage at market value. In this scenario, they help me out by clearing the rest of my student debt as well. So they are left with $120k are the mortgage, cc bills, and student debt is paid off. Which is smarter financially for us? My parents would be able to pay a new monthly mortgage for option B on what they currently make. The debt was made through bad decisions made decades ago and I trust them to be financially responsible going forward. I see the benefits of both options. Option A is a cleaner break to start new. Option B keeps the house they've lived in for 30 years and for me clears my student debt and gives me home equity (and a 30 year mortgage). They are offering to even give me student loan money if we choose Option A, but I wouldn't feel comfortable with that at the moment (Perhaps we could set up a plan where I pay them back for it interest-free instead of the bank, but to me this is a separate issue from the core options involving the house). Any insight would be greatly appreciated. [link] [comments]  |
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