re: How can I ever pay down this debt
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Westchester)
Date: Mar 29, 2005 15:48:39 PM CST
You make a little over $100K a year, but you owe $450K in home loans? If I remember the math (I got my house in '99 so it's been a while) banks usually won't give you a fixed rate loan of more than three times what you make-which would be $300K in your case. Notice, I said "fixed rate". That's why the bank gave you an ARM. The assumption for people who get these kinds of loans is that they'll sell their house before the rate goes up or that they are certain they'll be making more money as the rate goes up.
Things will only get worse once the rate goes up. You're only 27 so you've got a lot of time. You didn't mention if you were single or not, so I don't know if you have extra income to help you. Bottom line is, if I were in your position I'd sell the condo/house, move into a studio or something where the rent is less than $1500 a month and use the difference to pay off your credit card bills first. Focus on the one that has the highest interest rate and pay down t
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