My wife and I purchased our home four years ago. The house sits on one acre in the countryside with an amazing view of the sun setting over a corn field. The property was a foreclosure that had been sitting dormant for two years before I discovered it; the price alone was too good to ignore. I have been plagued by the question of whether I should sell my house to pay off debt or not.
Since we had purchased our home, we have not had the additional money to invest into decent landscaping or newer home furnishings due to the overwhelming amount of debt we had accumulated.
Two years ago we finally came to our senses and realized we had been, as Dave Ramsey would put it, stupid. The amount of debt we had acquired was absolutely crushing. I have been struggling with depression for a few years and the constant worry over this debt is not helping. The other night, my wife and I were watching the sunset and we were discussing what we would like to do with our lives. We had wanted to give our daughter some experiences, such as going to Disney Land, but without saving for years or borrowing more money, that wasn’t going to happen while she is still young.
How can we start living our lives without feeling the dread of crushing debt over our heads?
Looking around at our property, which still needed some work that we couldn’t afford to do, we asked ourselves if it was worth waiting years to finally have the home we’ve always wanted?
The Hard Decision
After some careful consideration and prayer, we have decided to put our property up for sale. If we can get the sale price where we want it, we will walk away completely debt-free. I understand many people feeling the pressure of debt over their heads contemplate whether or not they should sell their home in order to become free of it.
Most experts advise that if your mortgage payment is over 25% of your take home pay or if you don’t like the house, then go ahead and sell it. While the house is not considered a burden on us and we like it, we decided that we need to downsize to a smaller house. Plus with the burden of over $80,000 of debt completely gone, we could save enough to build the home we’ve always wanted.
Lastly, I should note that listing your home for sale to escape debt is not the silver bullet that will solve all of your problems. My wife and I are completely on board to never borrow money again and to always make purchases with the money we have. The solution to becoming debt-free is changing your behavior now so you can have a future later.