Couple Overwhelmed by Debt: Selling Rentals & Business to Get Debt-Free

Financial Situation Overview

• 🎯 A couple, married for years and with three young children, are seeking advice due to significant debt despite a successful land-clearing business.
• 💰 Their current debts include $24,000 on a credit card from renovations, $31,000 on a car loan, $292,000 on their primary mortgage, and substantial business loans.
• 📈 The husband's land-clearing business grossed $330,000 last year, but the couple is still in crippling debt.

Rental Property Strategy

• 🏠 They own two rental properties in Nashville, each with a $170,000 mortgage and valued at $310,000-$320,000.
• 💸 The plan is to sell both properties one at a time to avoid competing in the same neighborhood, aiming to net approximately $240,000 after mortgages and capital gains.
• 🔑 This profit is intended to be used to aggressively pay down consumer and business debt.

Business Debt and Investments

• 🚜 Business loans include an SBA loan of $170,000 (variable, currently at 17%) and a machine loan of $90,000.
• 📉 The speaker expresses concern about the boom-and-bust nature of excavator-type businesses and advises paying off all debt while the business is successful.
• ⚠️ They also have $8,000 in a Roth IRA but had $50,000 invested in cryptocurrency, which the wife wants to sell to clear debt.

Mindset Shift and Debt Payoff Plan

• 💡 The core issue identified is a "broke person mindset" focused on monthly payments rather than total debt elimination.
• 🚀 The proposed plan is to sell the rentals, pay off all consumer and business debt (totaling approximately $315,000), leaving only their primary mortgage.
• 🗓️ With the profits from the rentals and aggressive monthly payments of $10,000, they could be completely debt-free (except for their primary mortgage) within 12 months.

Commitment to Change

• ✅ Both husband and wife are 110% committed to selling assets, paying off all debt, and stopping further investments until they are financially free.
• 🤝 The husband, who gave up a pilot career to start the business and be home with family, wants to be completely free of owing anyone anything.
• 💰 They are being rewarded with a year of the premium Every Dollar budgeting app to help them execute their plan.