Should I Sell My House to Pay Off Debt?
When faced with the overwhelming feelings that debt can bring on, it is no wonder that some people consider selling their home and using the equity to pay off their debts. However, most of the times, the house is not the problem; there are usually other contributing factors to your debt. If you love your home, leaving the place that you love can take an emotional toll on you and your family. Of course, there are certain situations where it might make sense to sell your home. Here are some:
You Were Planning On Moving Anyway
If you have outgrown your home or perhaps now your home is too big and you want to downsize, in that case selling and using the money to pay off debts may make sense. A home that is bigger than needed is a lot of extra expenses; larger electric and heating bills, more upkeep, and more repairs. All of these little expenses will add up over time.
You Have Enough Equity to Pay off Your Debts
Selling your home might make sense if you have a lot of equity in the property; but if prices are high and you know after selling you will still not have enough to buy another property, then what is the point? You will still struggle with not having enough money to pay your bills.
For many families, their home is the strongest and biggest investment they have. It may be smarter to consider refinancing or looking into other options. If you love your home, don’t give up on keeping it so easily; and if you do decide to sell, don’t give up on the idea of owning another property in the future. Take this experience and the equity you made and start working towards that dream again.