Reducing Debt By Leasing?

[112358]

I've been reducing my debt for years to realize my dream of owning a house. I've paid off over $70,000 of my student debt over the last 5 years, but I still have $24,000 to go. Still, I am very close to having enough paid off that I can get a house much earlier than I expected. I looked into getting a mortgage recently, but they said that my debt is still too high to lend to me despite having a good credit score and credit history.

 

In an effort to reduce my debt further and faster, I thought that a good option would be to ditch my car loan (19k) and take over someone else's lease. I figure that this way I will wipe $14K off my books, instantly reducing my total debt obligation (apartment rent, car lease, student debt) from $47K to 33K. My other option is getting a used car, the problem is that this would add the same amount of debt or subtract from the 30K I saved for a down payment. I would also run the risk of having to pay for repairs if I got unlucky with a car purchase.

 

On my current trajectory (considering I get rent similar to the one I have now when my company moves) I will be debt free in 3 years if I wait to buy a house. If I buy a house I will be done with all of my school and car debt in a little over 1.5 years and save an estimated 2-3K in Interest. I will also be able to capitalize on the low mortgage rates and have the pleasure of owning my own home.

 

My hope is to get a $70-110K mortgage between December and March. I'd just like a second opinion from some of the people on this message board to see how sound my plans are.

[keepmine]

Are you sure you can sell the car you have for at least the amount owed and, does the lease you wish to assume allow for it to be transfered.

Also, with just $5k left on the lease, pretty soon you'll need to make some permanent transportation arragements.

[112358]

Are you sure you can sell the car you have for at least the amount owed and, does the lease you wish to assume allow for it to be transfered.

Also, with just $5k left on the lease, pretty soon you'll need to make some permanent transportation arragements.

I'm right side up on the car and I'm selling it for $1000 under blue book. I already have 2 interested buyers lined up if I choose to sell. The car I'm planning on leasing has 28 months before the end of the lease and 1100 miles per month left on it. I'm buying someone else's lease so there are no taxes or money down except for a $250 transfer fee. On a monthly basis I would be paying a third less than I do for the car I own now. The only thing that I don't know is how much more my insurance will cost.

[agingindebt]

Interesting selection of options. Im curious too see how this turns out. Please keep posting your results.