Payoff house? Sell toys?

**disneysteve** · 10-31-2013, 11:49 AM

You have a house, 3 cars, "camper, bass boat, sea-doo, Kubota tractor, quads" and you're broke. And your wife thinks that's okay? Oh, and she doesn't work. No you aren't being too conservative. She's being unrealistic. If she really wants to keep all of her toys, have her get a job to pay for them.

The argument that you're going to want to buy them again makes no sense. If and when you do want to get more toys, you can buy them used from someone just like yourself who is selling them. You don't have to buy new and pay top dollar. You may be able to replace them later for the same price or less than what you sold them for.

**Allan1** · 10-31-2013, 12:21 PM

Originally posted by disneysteve View Post

You have a house, 3 cars, "camper, bass boat, sea-doo, Kubota tractor, quads" and you're broke. And your wife thinks that's okay? Oh, and she doesn't work. No you aren't being too conservative. She's being unrealistic. If she really wants to keep all of her toys, have her get a job to pay for them.

The argument that you're going to want to buy them again makes no sense. If and when you do want to get more toys, you can buy them used from someone just like yourself who is selling them. You don't have to buy new and pay top dollar. You may be able to replace them later for the same price or less than what you sold them for.

Thanks for your input! BTW, all those toys were used when we bought them and some we got great deals on ($8000 tractor for $4500). Wife makes about $5k/yr (net) in her part time job teaching fitness classes (is maxed out physically) but until recently 'her' money didnt contribute to regular expenses, it was vacation money.

**TheKayla** · 10-31-2013, 12:28 PM

You arent in any other debt, and are very close to financial freedom, so that's good. I would immediately say sell all of your unneeded toys to pay down debt, but you're already in a decent situation.

How confident are you that you can build up your reserves again? Do you really feel as though you may not be able to make mortgage payments or is your anxiety from having less cash on hand at the moment creating anxiety derived conclusions? I know that I can feel like I'll never have enough coming in again during a famine cycle, but sure enough and fairly consistently, work picks up at certain times of the year.

Perhaps a better question is: how often do you use those toys? How much a part of your lifestyle are they? Can you give up just one to simplify your life and build up your cash reserve again at least to get you through this lull?

**ProjectDebtRelief** · 10-31-2013, 12:29 PM

Originally posted by disneysteve View Post

You have a house, 3 cars, "camper, bass boat, sea-doo, Kubota tractor, quads" and you're broke. And your wife thinks that's okay? Oh, and she doesn't work. No you aren't being too conservative. She's being unrealistic. If she really wants to keep all of her toys, have her get a job to pay for them.

The argument that you're going to want to buy them again makes no sense. If and when you do want to get more toys, you can buy them used from someone just like yourself who is selling them. You don't have to buy new and pay top dollar. You may be able to replace them later for the same price or less than what you sold them for.

I have to agree. Depending on which area of the country you live in (presumably you live someone where these things are usable throughout the year), these items are for sale constantly from folks who can't afford them anymore or who need to free up cash for bigger commitments (like a house note that is straining to pay each month).

For me, it's worth getting rid of toys to reduce stress and I'd hope my partner would be on board with that.

**Allan1** · 10-31-2013, 01:13 PM

I have access to $14,000 set aside for extreme emergency. Instead of adding it to main retirement accounts I had it put in a fund that allows you to cash it in. No penalty but you dont get the interest it had been earning (something like that). I try to forget its even there, but its technically available if in dire straights.

I'm in Michigan. Camper gets used twice a year (her toy, I dont even like it). SeaDoo about the same. Quads maybe an hour a month. Boat about 8-10X from May-Sept. Tractor is now & then when something is needed on our land (10 acres). We can CERTAINLY live life without these things. 3rd vehicle is my work car. I could easily use my truck instead and pay the extra gas expense with the savings in insurance, etc. Frankly, I could sell a few of the things in a week and have this whole thing taken care of if I could figure out how to get her to understand.

**snafu** · 10-31-2013, 10:23 PM

Can your wife be persuaded by facts? The camper's is valued at $ X and used twice a year costing $ .05 of value per trip. Add in cost of insurance, storage, winterization, summer prep, and operations. Repeat that for each of the other 'toys.' Perhaps offer to continue to use your work vehicle and offer to sell your truck to emphasis your sincerity. Life is too short to stress over paying the mortgage.

If your wife operates on emotion, ask those emotionally loaded questions. You will need to find a way to negotiate money matters.

**LivingAlmostLarge** · 11-01-2013, 05:30 AM

Negotiate that you need to simplify your life because you are worried about losing everything. Do you have retirement savings covered? If you don't all the toys need to go and you need to refocus for the long term.

**feh** · 11-01-2013, 07:15 AM

I don't understand why you want to pay off the mortgage w/ only 2 years left. Virtually all the money is going toward principle now.

If you want/need to sell toys to improve cash flow, I can understand. I wouldn't throw extra money at the mortgage, however.

**disneysteve** · 11-01-2013, 07:45 AM

Originally posted by feh View Post

I don't understand why you want to pay off the mortgage w/ only 2 years left. Virtually all the money is going toward principle now.

If you want/need to sell toys to improve cash flow, I can understand. I wouldn't throw extra money at the mortgage, however.

Selling the toys only improves cash flow if they are financed. If they are owned outright, selling them to raise funds to pay off the mortgage early eliminates the mortgage payment which then helps cash flow. Or you can just use the funds gained from selling things to make your regular payments.

**asdf** · 11-01-2013, 08:10 AM

Originally posted by Allan1 View Post

I am self-employed with a very irregular income year to year. Have always kept a good cushion, but this yr has been brutal and we've used up much of our reserves.

Do you see this year as being an aberration, or could be indicating a trend to come?

**TBH** · 11-01-2013, 09:50 AM

I think if eliminating the mortgage payments 2 years early will significantly relieve your stress, it's worth it.

If you can't get your wife on board, perhaps you have to sell toys that are primarily yours. Would that be enough to pay off the mortgage, or do you really need her buy-in to make it worth it?

**BMEPhDinCO** · 11-01-2013, 10:07 AM

Here's a different view point...

1. You only have 24 months left on the mortgage.
2. Your son is about to start driving (and may want a car)
3. You use the boat often.

My thought... how much are the camper, tractor, and seadoo worth? And not like "we think they are worth.." but actually worth? If you don't know, then go on craigslist and see how much other people post theirs for - then subtract 10%. If those three alone cover 1 year, then reduce your mortgage by 1 year and hang on for the remainder. It'll be gone by next December!

Then give the car to your son, so he can use it to get to a job for gas and insurance. Let your wife save her money for a new (used) toy if she wants to replace the three sold.

Another idea... list the toys and third car on craigslist with the agreement that if they aren't sold in a month for +/- 10% of listing price, you will take them down.

Finally, if you really can't get everyone on board, it's only 24 months until you free up $1k a month so hopefully everyone can pitch in for that. Two years goes by quick!

**feh** · 11-01-2013, 10:44 AM

Originally posted by disneysteve View Post

Or you can just use the funds gained from selling things to make your regular payments.

Yes, this is what I meant. If money is tight because of reduced income, use proceeds from toy sales for paying bills, not pre-paying mortgage.

**Allan1** · 11-01-2013, 12:45 PM

thanks again everyone! Regarding a couple questions/points: I TRIED putting only 'my' things up for sale (even my beloved bass boat!). She said that was stupid, went and got the keys and hid them so I couldnt sell them. My car and boat alone would payoff the mtg. My work car is WAY too nice for my son to get, plus he has plenty saved up to buy his own used car when the time comes. I could use proceeds from sale of toys towards bills instead of paying off mtg, but I see that is just kicking the can down the road. The pressure to come up with the payment every month will still be there for 2 yrs. Why not just get rid of that? It'll be easy to pay bills without the mtg there. There is no way I can go 2yrs without something changing. I've been so stressed that I've been getting chest pains at times and mini panic attacks. As stated earlier, I have no idea if the work slowdown is temporary or not. My whole industry has changed so we're in unchartered territory and re-writing the rules. She's VERY detail-oriented and a perfectionist. I have started to spell out all the facts/figures on paper to show her - might be able to tonight when kids go to grandma's for a while. Wish me luck!

Did I mention that during all this she goes and signs up my son AND herself for an overseas school trip next year? At a cost of $9,000. She thinks fundraising will pay for it. I told her they'll only come up with a fraction of that by selling candy and collecting pop cans. Not to mention the time involved where she/they could be working instead to help pay the bills. See why I'm going nuts?!?!

Payoff house? Sell toys?