Should You Sell Your House To Pay Debt?
Debt can be infuriating, and if it has consumed your life, you may be in a desperate situation. Not only are you probably having a hard time dealing with the financial burden of it all but also the mental health implications. Im sure you have thought about how to get out of the situation, but maybe you aren’t considering all of your options. While some people start small with the snowball method, some people take more drastic action like selling their homes. I am here to discuss whether or not you should sell your house to pay debt. Follow along for more.
What Would I Do?
I personally wouldn’t sell my home to pay off debt, and here’s why: It takes time to sell a house. Today, in most locations, it’s a great time to put your home on the market. It’s a seller’s market, people are getting top dollar, and homes are going quick, but that could change tomorrow. Under normal circumstances, it takes time to sell your house. It’s not as quick as getting your money tomorrow or even next month. It can take at least 90 days from showing to close. While you may be getting fair value and a lump sum of cash, you have to think about where you are going to live after the sale and if it makes financial sense. Take me, for instance. My mortgage is close to $800 right now, but if I was a sale and had to get an apartment, the rent will be closer to $1400 per month. For me, that doesn’t make financial sense and pushes me further into the debt I am trying to avoid.
Better Solutions
I always say there are several solutions to a problematic situation. You don’t have to sell your home to get out of debt. While a lot of people don’t like Dave Ramsey, the snowball method absolutely works. You should try something like that first. Make sure you have a budget in place. Use software like YNAB to help you put a job to every dollar you earn. Methods like these hold you accountable. They look at all your income, all your financial obligations, and assign all of your money a job to help you get out of debt faster. You could also sell stuff from your home. I have a lot of old things lying around that I am not using. I have tables, chairs, appliances, and high-value decore just laying around, and if I needed some money to pay off a debt, I could sell those items.
Work A Side-Hustle
You could also work a little bit more. This is the age of the side hustle nation. There are too many jobs you can do from the luxury and comfort of your own home without having to go into an office. Analyze your skillset and see which one you can capitalize on. For me, it’s writing. I could do it in my sleep, and I know I can make some money from it if I needed to. You have to figure out what is best for you and go for it. You don’t have to work all day, find a suitable hustle that doesn’t take up a lot of your time but brings in enough to cover your financial obligations. This is something you can look into and even start today. If you are successful, you will no longer have to consider if you should sell your house.
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