We Don’t Know Who To Trust


Hi Scott,

My husband is 66 and I just turned 58. We have two investment properties as well as our primary residence. We have just refinanced them all for a third time, after our business went bust.

We owe $200k on our home, which is worth about $430k, while our two investment properties are worth approximately $320k and $350k, which we owe the full amounts on and are paying interest only. We also owe $17k on a credit card.

My husband earns approx $80k (commission based) and I earn approx $40k. I work three days for wages and two days in my own client-based business. I have $30k in super, while my husband has next to nothing.

We are totally over being in debt and are thinking about selling our home, moving into the $320k investment property, and paying down our debts. We would appreciate your thoughts.

Jen and Steve

Scott's Answer

Hi Guys,

So you’re broke.

You know that. And the three different lenders that shuffled your debts around knew it too.

My advice would be to sell your home and the $350,000 rental property, and move into the $320,000 rental property. Use the settlement money to pay out your credit card (cut it up, never get another one), and put $10,000 in a high-interest online savings account (not an offset account), and pay the rest off your home loan.

You’re still going to have around $120,000 in debt after doing this. My advice would then be for your husband to start a transition-to-retirement strategy, so he can save on tax. If you can live off around $800 a week, you’ll be debt free within two years.

Once you get the bankers off your backs, you’re going to need to save at least $250,000 to retire on $800 a week (which includes the aged pension). So keep putting as much into your low-cost super fund as you can.