Huge Steps

Today my husband and I took two huge steps. 

We met with our bank.  Our bank manager is D. and She's amazing.  We went to discuss our thoughts of selling our home.  She brought in a mortgage officer and we all talked about our options, our future and what the bank looks for in customers.  It was really helpful.  Here's a little of our situation.
We commute to work and spend $600/month in gas.
We have always been on time with our mortgage payments. 
We have owned our home for 9 years. 

Our ideas

Sell the house  and rent closer to my work and my husbands university.
My husband will be done with college in 2-3 years

Our Bank's suggestions

Don't save that huge payoff from your home.  Pay off all your debt and try to graduate from college debt free.  Then start saving for the future home.  A small down payment but no debt will look better than a larger down payment but debt. 

So our plan  if  when we sell our home

Pay off all credit cards and both cars
start paying off student loans
rent a cheap house in town that we work and have school to save that $600 in gas each month - put that toward student loans

GOAL

3 years from now - be completely debt free including all student loans and have at least $10,000 saved for down payment on home


Immediate To Do List -

Contact Realtor about selling home - Done!
Start getting house ready to sell - without spending money
Get Current on bills including husband and self getting second jobs


I did research about what Dave Ramsey, etc advise regarding selling your home - they say it's ok as long as you want to sell your home to begin with.  Don't sell your home just to have an easy fix for your debt.  It will not change your future spending habits. 

We recognize this and do not feel this is a quick fix.  We would likely be moving when my husband graduates from college anyway for his job.  May as well end up in a better financial state. 

I really appreciate all the advice and support from everyone in the blogosphere.