Dave Ramsey
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Dear Dave,

Is it ever a good idea to sell your home and buy a smaller, less expensive one in order to get out of debt more quickly?

Autumn

Dear Autumn,

It’s a good idea in some situations. If you don’t really like the house, or maybe you were thinking about selling it anyway, then I’d say go for it. It would also be a smart move if you simply have too much house and the payments are eating you alive.

I usually recommend that your monthly mortgage payment or rent be no more than 25 percent of your take-home pay. If your house payments are taking 40 to 50 percent of this figure, then it’s time to unload the house.

But selling your home can be a tough thing emotionally. I’d never advise someone to sell the place they love and move down in house if their payment is reasonable. In these situations there are usually other areas where you can cut back, keep your home, and still get out of debt in a reasonable amount of time.

—Dave


Dear Dave,

I’m getting married to a wonderful man, but his 19-year old daughter from a previous marriage is very irresponsible. She doesn’t want to make her own car payments and doesn’t want to work. Lots of days, she sleeps until noon and just lies around the house. He agrees that he’s been too lenient and that she needs to grow up, but doesn’t want to pull the rug out from under her. What do you think?

Kelly

Dear Kelly,

There are two problems here. One is financial in nature, and the other is a lack of boundaries. You’re walking face-first into both of them.

Marriage counselors will tell you if you can agree on four things – religion, money, children and in-laws – then you’ve got a good chance of having a successful marriage. You’ve got two of these yanking your chain right now - money and children - and they’re both wrapped up in one spoiled little girl. If you and dad really want to show her that you love her, you’ll make sure she starts learning some character and discipline.

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Dave Ramsey

Dave Ramsey is a personal money management expert, popular national radio personality and the author of three New York Times bestsellers.
 
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