Wife Doesn’t Want to Be Twenty Again
Hi Scott,
My wife and I are both 53. I earn $110k but our living costs are consuming our income, leaving nothing for extras or contingencies. We have exhausted our savings and rung up $24.5k in credit card debt, with another $8.5k drawn against our home -- which is worth $500k, with $403k owing. We have an investment townhouse in Brisbane worth $370k, with $322k owing. Our refinancing options are limited as our debts are equal to 85 percent of our assets. The way my wife puts it, she does not want to ‘go back to living like we did in our 20s’. What are our options?
Lindsey
Hi Lindsey,
Sounds like your wife is half the problem (and … you’re the other half). She may say she doesn’t want to live like you did in your 20s, but you guys are behaving like it. You’re 10 years out from your retirement and you’re funding your lifestyle by credit cards? Seriously?!
Yes, you can sell the townhouse, which will pay off your credit card debts, and maybe your line of credit (remember, though, you’ll pay capital gains tax). However, it’s a near certainty that you’ll end up right back where you are now unless the two if you get on the same page. And by that I mean convince your wife that there’s more long-term pleasure in being financially secure than there is mindlessly adding to the nation’s landfill.
Scott