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My husband is 52 and works full time and I do not work as I look after 3 kids. We have combined $120,000 in super, a mortgage of $590,000 (house worth $675,000). We have no other savings. We owe $40,000 on credit card. Should we buy a cheaper house as we are finding things tough? If so, what price range should we look at?
That’s a tough situation and a question very difficult to answer not knowing the full story and reasons why you got here. You’re probably won’t like my response because it will need hard work. You need to completely turn your world around before it’s too late.
My sincere advice to you would be seeking quality financial advice as soon as possible – get someone to look at your cashflow – both expenses (your current lifestyle) and income possibilities. Eliminate all the unnecessary expenses you have (including items you may not consider luxuries) and look at ways to earn extra income. Can you get a job? Any job? What about your children? There must be a way to turn things around and get you back to green again, but you must be willing to change your ways
Next step would be paying off your credit card and once you do, use scissors to finish it off. Then downsize to a mortgage you’ll be realistically able to pay off before your retirement. Every good financial planner will be able to put this together for you and review your progress as you move forward.