Advice from Nashville's Financial Guru Dave Ramsey
Dave Says
By Dave Ramsey
Author of Financial Peace and The Total Money Makeover
8/14/2006
"Selling house to get out of debt … does Dave agree?"
Dear Dave,
I owe $20,000 in consumer debt. I'm selling my current home, which I don't like very much, and want to take the $25,000 in equity to pay off everything I owe. After this, I'm planning to live in an apartment for about a year then make a huge down payment on a new house. Does this sound like a good plan?
Dale
Dear Dale,
I think it's a good plan because it sounds like you're ready to get out and would sell the house anyway. But if the only reason you'd sell your house is to pay off the debt, then I'd say don't do it - just get angry at the debt and attack it instead.
Feeling like you're forced to give up your home is an emotional experience - one that can damage your spirit. You should always exhaust all the other options before putting yourself through that kind of stress.
- Dave
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