More Baby, Less Debt

Jay and his wife have $22,000 in debt, and they've been working on a debt snowball for three years. They would like to have another baby. Should they sell their house to pay off the remaining $22,000?

QUESTION: Jay in Canada and his wife have $22,000 in debt, and they’ve been working on a debt snowball for three years. They’ve paid off $30,000 within the last 36 months. They have a 15-month-old and would like to have another baby. Should they sell their house to pay off the remaining $22,000?

ANSWER: You are only 20 months from being debt-free except for the house. There is nothing wrong with selling the house and renting if you want to do that. Just make sure it’s a house you really want to get rid of, because in 20 months, not counting the pregnancy, you’re going to be debt-free anyway. I think you can make it and keep the house. You may have to organize the pregnancy a little differently assuming you have some control over that; I think God does. But that’s how I would look at it.