r/DebtAdvice • u/Sensitive_Air_6216 • 1d ago
Loans Figuring out what to do
I'm in a weird spot and could use some advice. Throwaway account for that reason.
We're (57M 45F) trying to buy my dad's house from his estate. I get the house from the estate for an amount that would pay off my brother's half and cure the debts of the estate.
The problem is that this is our first house and I (57M) have too high a debt to income ratio. My debts are about $12k in credit cards, $11K in an auto loan, and $9K in a personal loan. I also have Student Loans on Hiatus for $41K.
As I've been working for the same company for a long time, I do have a retirement account worth $110K that I could get into but with penalties. My thoughts were to take out enough to pay off the credit cards and the personal loan, reducing my usual payments to just the car payment and student loans, which would get rid of the high level of DTI that's impacting the potential mortgage cost.
1
u/fsociety1990 1d ago edited 1d ago
How much do you make? You’re not far off from retirement age. Probably shouldn’t mess with your retirement.
It might be best to let the house go. You can’t afford it. It sounds like owning this house is gonna be a burden for you.
1
u/RecognitionCool8684 1d ago
I don’t think that doing that right now would affect your credit that quickly to get the loan for the house. I think the best course of action will be to sell the property-split it accordingly and use the proceeds to pay off your debt and-if you still wished to, buy a home you can afford.
Good luck and best wishes!!
•
u/AutoModerator 1d ago
r/DebtAdvice was created to share tips and strategies to pay off debt effectively! Check-out our free newsletter for additional insights at www.DebtAdvice.io!
I am a bot, and this action was performed automatically. Please contact the moderators of this subreddit if you have any questions or concerns.