Hi, I am 56, employed, make a decent wage. I am
I am 56, employed, make a decent wage. I am vested in my retirement account for the work I am currently doing, and will get a few thousand dollars a month from that when I retire, plus medical.
I am also collecting a $1000 a month from an early retirement from another line of work I held.
Separated from husband four years ago, bought house, raised kids, got very little help from him (no legal divorce settlement yet--can't afford it!--but should get a substantial settlement if I ever do). Ran up cc debts after separation, and have been pretty much just managing them--they are about the same after paying on them for a few years now.
My interest rates got raised to 29.99 a few years ago by two companies (Citi and Chase), not because I was delinquent--have never missed a payment--but because I had too much debt, and they were approaching a deadline that would have prevented them from jacking up the rates if they waited.
Once that happened, I've just been treading water. Making a little more than minimum payments. And life, when you have kids, happens. Get a balance down and a medical or dental bill pops up, or a car dies, or pet gets sick.
So it goes. One kid off to college, another finishing HS soon, so light at the end of the tunnel.
My credit is decent--680-720 range. I have never missed a payment, had a judgement against me, etc. Have a house, never late w/mortgage.
Had a decent car, it was totaled in an accident and insurance paid pennies on the dollar, left with about $6k to pay off, about halfway there.
Have about 10% equity on my house, no one wants to consolidate my loans on this.
I just don't see this changing unless I do something drastic.
Considering selling the pension I am currently collecting. I have three options: selling one year's income (12K) for 5K, which would allow me to pay for a divorce if it doesn't get too ugly, but leave me in pretty tight straits for paying my debts this year; 5 years income ($72K) for $36K, and selling 8 years ($96K) for $50K.
My credit card balances run about $34K. I also have about $13K in other debt, including the long-gone car I'm still paying off, school loan, personal loan, medical.
If I get a sum that permits me to pay down my debt, than the cost of the difference between the payout and the income stream is mitigated by both the interest I don't have to pay and the peace of mind I achieve. I would actually have more money in my pocket each month, at least for several years, if I do this.
I want to pay all of these off (as I assume is the case with virtually everyone who posts here), but don't have sufficient money to do that.
I paid $1700 this month just in debt payments (not including mortgage), and really dread the idea of something happening to blow down my house of cards. Even though I will take quite a hit to go the pension stream sale route, it's the only option I see right now.
If I go into a divorce with this huge debt hanging over my head, I feel like my spouse would use that against me. I also don't want the tension of having that unresolved while I go through the upheaval of the courts. If I have no debt, I feel like that would be a source of strength.
Can you help me explore the pros and cons of going this route? Also, how do I find a reputable company that does this? How do I find the best rates for this? And what is the impact on my credit score?
Thanks very much--I have no clue as to where to turn to get answers, and found this website whilel I was searching. Hoping someone can advise.