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Should I Sell My Home To Get Out Of Debt?

The economic downturn in Alberta is nothing new. The number of properties on the real estate market in Alberta has gone up as a result, which has created the worst scenario to try to sell a house. Prices haven’t dropped dramatically yet, so it remains unclear whether Albertans have bailed out of home ownership on a large scale.

After Alberta residential prices fell in 2008, they did recover – although it took about three to four years to reach the old peak. So let’s look at a few things for debt assistance.

  1. Don’t hurry

You should take small steps, even if you are in debt. Organize your long term goals, or at least try to. This is not easy though. Take time to see a debt counselor, somebody who can guide you through your journey. Taking decisions with proper research is one important thing that you should do when you sell the house to pay off debt.

  1. Consider the long-term market

If you can make the big decision of selling off your house be sure that you are aware of what the experts say. The experts expect home prices to recover some of their losses over the next few years. By waiting for 24 or 36 months, you can look for some potential targets for the near future. You might also be able to get even more for the house. So consider the long-term target and keep in touch with a few market experts when thoughts like ‘should I sell my house to clear debt’ start popping up.

  1. Don’t rent; not yet

During a tough period, you might think of renting. Paying a lower rent and not paying a high mortgage may make sense in the moment, but there is a small hitch. When you pay the mortgage, you are in a way, building additional equity to your own house. This is something that renting would not give you. This definitely does not mean that you must have your own home. In fact, paying a lower rent is always a great choice when you are younger and starting out in life. But in times when you are planning to sell the house to pay off debt consider the equity you now have a opportunity to build.

Have you ever faced a choice like this? (Or do you know somebody who has?) What would you do if you were in a ho-hum job in a house you didn’t care for and had the opportunity to try something new? If you are having a tough time in finding debt assistance, then 4 Pillars is a place which you should visit.

2 Comments

  1. […] It is important that you should take small steps when you are in debt. Or at least try to. Take your time to see a debt counselor who can guide you through your journey. You have to take decisions with proper research about your debt situation. It is important that you keep in touch with a few market experts when thoughts like ‘should I sell my house to clear debt’ , start popping up.  […]

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