Wednesday, November 23, 2011

What should be done if I have about $300k in student loans and a mortgage for $190k that is now worth 140k?

The house has lost value and I will have to move in the next two years.What should be done if I have about $300k in student loans and a mortgage for $190k that is now worth 140k?
The housing market WILL recover, at least partially in the next 2 years. Live off $60,000 and use the other $40,000 to pay down the student loans. If your income goes to $400,000 in 4 years, you should be debt free, INCLUDING a home within 5 years. After that, saving for retirement should be EASY. Just don't increase your lifestyle as fast as your income increases.What should be done if I have about $300k in student loans and a mortgage for $190k that is now worth 140k?
Who knows what will happen in the next two years....you might recoup some of that 50k while paying the mortgage at the same time. NOTHING can be done about the student loans. Those will haunt you until they are FULLY paid off.
You're only providing half of the picture. What is your income, expected income and assets?
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