In my last post, I talked about our debt load and how we were considering selling our house in order to free of the "slavery" that being in debt feel like. I know we're not alone in this. So many circumstances can contribute to excess debt that can take YEARS of our lives to get rid of. We've lived with this debt for several years already and we're ready to make a violent, drastic move to get out of it!
So, what are our options? In order to get out of (and stay out of) debt, we need a plan. We were NEVER in debt until our mid-30s. We always paid our credit cards off each month. We bought used everything and paid cash. I was the coupon queen when it came to groceries.
We KNOW how to live within our means.
The problem is that our means aren’t enough to cover what we've accrued and the cloud hanging over us is quite stressful. I know many of you know exactly what I mean about that cloud. So, what to do? Here are the thoughts we’ve come up with:
- Be more frugal and buy nothing that isn’t needed. (We haven’t gotten down to the bare minimum yet, but we’re moving in that direction.)
- Pay cash for everything so as not to add to the credit card load. (We’ve been doing that since May. I LOVE paying cash!)
- Husband could take on a third job. (Here is where it starts to get sticky. He already works 55 hours a week on his paint contracting business. As a part-time pastor, he spends 20+ hours a week in church related time, 6 hours go to the commute, and then there’s always that pesky need for sleep…)
- I could get a paying job. (I homeschool full-time and do the books for my husband’s business. Neither brings in income, of course. If I were to work, then my husband would need to be home to take care of Son. I would have to find something that I could do FROM home in order for this option to be remotely feasible.)
- We can sell everything (except Son) to gather up the greatest amount of funds as possible. (That would possibly result in about 25% of the amount we owe. Definitely what I'm getting ready to do. And I thought my yard sale last spring was my last . . .)
- We can sell our house which will pay all debt and leave approximately a $30,000 profit.
In my next post I will attempt to compare and make SURE that selling the house would make sense.