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Buying a house... Maybe.
25/F/USA
My fiance recently received a letter stating that, because he has failed to repay his student loans, payment will be claimed in the form of tax returns, social security, and other taxes, etc. The loan itself totals around $2,500... We could easily pay off the loan in less than three years and prevent this action from being taken.
However... The real problem is that he owes on other student loans as well as a credit card. I estimate his debt to total, but to be no more than $10,000. I also owe around $10,000 but my credit score is still fair due to my payment history.
Both our debts are managable... But I was thinking... I could probably buy a house for less than $100,000 (I've all ready been browsing properties) and the mortgage would be slightly higher, equal to, or less than what we all ready pay in rent. So... What if I bought a house, then re-financed in less than a year... Used the money from the refinacing of property to pay off both our debts... Then we'd only be left with the mortgage. (Until we refinance we'd both pay on our loans, a total of : $500 a month approximately.)
I suppose I'm asking for your opinion and life experience because I'm concerned that 'my plan' wouldn't work out the way I intended and we could end up screwing ourselves financially. Do you know anything about loans? Have you ever refinanced your house? I've tried searching the internet... And I've found a lot of information that I'm having a difficult time understanding because I've never tried anything like this before. Any advice that you can give would be greatly appreciated.
Thank you in advance for your time :)
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Want to answer more questions in the Work & School category?
Maybe give some free advice about: Personal Finance?
Its probably not a good idea to get further
in debt buying a house until you get your other
debt paid off. That includes not only student
loans and credit cards, but cars too.
I know that isn't want you want to hear, but
in the long run you will be in a better place financially.
If you currently live in an apartment you
suddenly would have to buy a lawn mower to
do lawn maintenance. They aren't cheap!
There is trash pick-up & utilities. Property
taxes and insurance. Furnishings & problems.
Water heaters go out, sewer backs up little
emergencies that can cost plenty to repair.
And then the student loans are just added to mounting debt. Now, not all these may happen,
but they are possible. They always happen at
the most inconvenient times!
You could probably get all your loans paid
off quickly if you both put your minds to it.
It would mean doing without luxeries for a
short time but its possible to do.
Have you ever heard of Dave Ramsey? He has a
radio show hear that I listen to all the time.
If you are interested in getting out of debt
quickly and buying a house, I would recommend
his show highly. I think he is on fox news
too.
[Link](Mouse over link to see full location)
Best of luck! If anyone can help he sure can. :)
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