I have 22,000 in credit card debt, (maxed out -also really harming credit score - it's bad) monthly payments of about $450.
I want to get out of this debt, but can't afford more than the minimum payments.
I have a property I am renting out. I can only get $1400 a month rent and the mortgage is $1800 a month.
I have been contemplating the following options:
1) Keep all as is and try to put every extra penny into credit cards and pay for a number of years
2) Sell the rental property, ridding my self of the $400 difference I am paying on monthly plus use the equity (which is about 17k) to get out of credit card debt - saving me $850 a month - OR - keep it and hope it really goes up in value over next 10 years and rent goes up to cover full cost in ten years
3) I have $30,000 in 401k - get all the money out, pay off credit cards, which will in turn raise my credit score (as they are maxed out right now), try to refinance the rental for a lower rate
What should I do? Any other ideas?
Thanks!
I want to get out of this debt, but can't afford more than the minimum payments.
I have a property I am renting out. I can only get $1400 a month rent and the mortgage is $1800 a month.
I have been contemplating the following options:
1) Keep all as is and try to put every extra penny into credit cards and pay for a number of years
2) Sell the rental property, ridding my self of the $400 difference I am paying on monthly plus use the equity (which is about 17k) to get out of credit card debt - saving me $850 a month - OR - keep it and hope it really goes up in value over next 10 years and rent goes up to cover full cost in ten years
3) I have $30,000 in 401k - get all the money out, pay off credit cards, which will in turn raise my credit score (as they are maxed out right now), try to refinance the rental for a lower rate
What should I do? Any other ideas?
Thanks!