Downsizing House to Get Out of Debt?
Autumn asks if it's ever wise to downsize a house to get out of debt more quickly. Dave says it is if you didn't like your house anyway and were already considering selling it.
QUESTION: Autumn on Facebook asks if it’s ever wise to downsize a house to get out of debt more quickly. Dave says it is if you didn’t like your house anyway and were already considering selling it.
ANSWER: Yes. It would be wise to do that if you really didn’t like your house anyway. You were thinking of selling it when you got everything straightened out, and by selling it and moving down, getting everything straightened out happens even faster. That would be pretty cool. If I loved my house, and I would never sell my house except that I got all infected with this Dave Ramsey get-out-of-debt thing, then no, I wouldn’t move down in house in that case—unless your house is 50% of your take-home pay and you can’t pay the bill and you can get out of your house that way. You need to move down anyway because you’ve got too much house. If your house payment is a reasonable house payment and you love your house, no, I would not move down. If you really didn’t like it and you were thinking of moving anyway and by moving down you got your mess cleaned up even faster, yes, we move right ahead as fast as we can at that point.