Dear Dave: Do you ever recommend someone selling their house to get out of debt?
The only time you'll ever hear me tell someone to sell their house to get out of debt is as an absolute last resort. If there's just no other way to turn a corner, then it might be an option. Another would be if you don't really like the house and you've considered selling it anyway. The third situation would be if the house is just too darn expensive. If you're sending half of your monthly income to the bank to make house payments, then you've got way too much house!
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But most of the time the house is not the problem in these kinds of situations. There's usually lots of other stuff, like credit card debt and $700 car payments. I'd sell a car in a heartbeat before I'd ever consider giving up my home. Think about it, Andrea. Being forced to sell your home in a case like that would be an emotionally devastating experience. I mean, it's your home.
And the truth is that in some places it would be a pretty good idea to hang on to a house. A lot of markets are already recovering at a rapid pace, and the real estate market in America-with the exception of a few trouble spots-is a lot more alive, dynamic and fluid than many people in the news media would have you believe. There are some seriously good real estate situations out there right now!