Getting A Guaranteed Lease

A guaranteed lease on a house is something that you might resort to if you're desperate, and Dave doesn't think Mandy is there yet.

QUESTION: Mandy and her husband are working on their debt snowball. They are getting killed on filling up his car with gas because he drives more than an hour to work and are thinking of moving. Should they take a guaranteed lease on their home? Dave likes their passion but doesn’t want them to panic.

ANSWER: There’s not a chance that I’ll do a guaranteed lease. If the company that does the lease falls apart, it means you’ll fall apart with them. The only way they are doing that is if they make a huge amount of money on you. You’re not that desperate. You need to move, but you don’t need to give your house away, or run or get tied up in some confusing thing. Put your house on the market at a reasonable price and try to get it sold. If you lose a couple of dollars on it to move, then that’s fine.

Believe it or not, the only thing that has changed is that you guys have woken up and realize you need to get out of debt. It’s not gas prices that did that. Don’t go into panic mode; you are just intense and want to do smart things to get the ball rolling. Don’t let it take you to the point that you mess yourself up.