Managing debt is difficult and paying off high debt is nearly impossible without a substantial increase in income. Since that is not usually an option people who wish to be debt free need to look at how to cut outgoing cash so that more money becomes usable to pay off debt. In this get-out-of-debt blog, we look at seven reasons why selling your home makes good sense to pay off debt.
Top 5 Reasons For Selling
1. You Have Some Equity — but not enough. One reason to sell your home is that you have some equity. It may not be enough to get yourself out of debt, but it is enough to pay off a chunk of debt. A second mortgage would not work because that adds more debt and decreases cash flow.
2. Your Mortgage is High — Sometimes it makes more sense to rent. If you are paying a high mortgage and rents in your area are less, then consider renting rather than buying. You can add more available cash for paying off debt and then buy another home later.
3. Property Taxes are Insane — If your property taxes are high then consider selling your home and using that saving on taxation to pay off debts quickly. Using the $3,000 -$5,000 a year that you would pay for property taxes toward debt is a good way to become debt free faster.
4. Your Job is Downsizing — Your paycheck is shrinking. That happens and when it does people have to do what they can to save their credit rating. That may mean selling your home and renting while you pay off your loans.
5. You are House Poor — There is little left over on which to live. Between mortgage, car payments and bills, there is nothing left on which to enjoy life. The only way out of that trap is to pay off your debts but without getting rid of your mortgage you are stuck in that cycle for the next 15-30 years. That’s no way to live.
6. Your Home Is Too Large — Minimalism makes sense. If you are buying a home that is too large for your needs then downsizing to a smaller home or even renting can be a financial gain. Use that savings to pay off your debts.
7. You are Living on Credit — Your debt load keep climbing. You have a good job, but you are not able to pay for everything without using more credit and gaining more debt. If that is you, it is time to sell your home and focus on paying off your debts.
Why Work With Jerred
Selling a home is not the end of the world. Yes, many of us feel that owning our own home is the American dream and it can be. The trick to make that a dream instead of a nightmare is timing. By managing your debts you gain better credit, and are able to buy a house that fits into your budget. Debt is a weight that just drags you down and holds you back. Shed that wait and you are free.
Being free is the American dream too. Are you ready to be free? If so give us a call and let us help you sell your house, so you can start the process of being free of debt.