Dazed and confused

by Cheryl
(Hemet, Ca, USA)

We have refinanced our home many times (dumb), except when it was to lower the rate. Most times, we used equity to pay off auto loans, pay credit card debt. Therefore, we ended up with more debt and proceeded to keep using credit cards, which always seemed to be soooooooo handy. BIG MISTAKE.

Now here we are and want to retire in 2 years, if we can get through, (husbands work is very erratic and slow), and we owe more on our house than it is supposedly worth at this point in time, due to the fact that values went south with the economy. We also have about $40,000.00 worth or credit card debt, some $13,000.00 of it for major repairs, etc. to our home. Had no choice on that, had to do it.

My question is, if I have extra money, haha, should I apply it to the 2nd mortage, or pay down the highest rate card? We still have excellent credit and will be moving out of California as soon as we get retired.

I realize that we may not get anything out of our house, but we still hope the economy gets better and the value goes back up to where we could pay off debt and have enough for a small down for something elsewhere.

What they say about hindsight is so TRUE. With my husbands work the way it is, he may have to see if he is eligible to retire sooner than next May when he turns 62. He has 37 yrs in the Laborers' Union.

We could have had it great, but we were stupid. Did not look at the big picture.

I would appreciate any suggestions and advice! We haven't gone down with the sinking ship yet.......Sincerely, Worried