How do I get started when I'm already in debt?

by John
(Moncton, NB, Can.)

I've been contemplating this too long. I'm now in midlife, and in debt. I could probably re-mortgage my home, but like everyone else, I'd have bills to pay first and renovations that need to be done. Therefore, I'd have to borrow too much money to accomplish all I need.
I know you talk about focusing and buying that first property. How do I approach the Bank and what should I do before going to the Bank.

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Nov 17, 2010
RE: How do I get started when I'm in debt?
by: Tom Karadza

Hi John,

You're going to hate me advice. Pay off the debt first...

OR

At least get it to a manageable level where a high % of your income isn't going to servicing it. And we mean debt other than the mortgage on the property where you live...you know, all the bad debt.

Everyone's going to have a totally different opinion on this but here's why were suggesting it:

Real estate can have twists and turns, costs and unexpected bills. If you're not in a position to handle an unexpected cost on a property the dream of producing passive income may turn into a nightmare on you. Build up some cash reserves before you begin or be prepared to hustle hard if unexpected expenses pop up.

Tom.

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