Throughout the recent recession we have heard the term downsizing quite a bit. Downsizing is the act of moving to a new home or apartment in order to better your financial situation. Many individuals have found bigger more comfortable houses for less money because they tweaked their idea of the acceptable home. Most people are very emotionally attached to their homes, and moving can be an emotional event which is why it is important to carefully consider this drastic financial step.

When It Is a Must

There actually are not many situations in which downsizing is the only option.

If you are facing a possible foreclosure in which you have exhausted all means of reversing the situation, then selling or short selling your home may be your only option. This may seem like a bleak option at first, but it is a far better option than outright foreclosure.

Many people find that once they are out from under a burdensome mortgage they are very relieved and can focus better on work, family, God and rebuilding their finances. Selling your home to avoid a foreclosure is not the end of the world; it could be the beginning of a much better financial life for you.

Wiggle Room

Beyond pending foreclosure, another reason to downsize might be because the payments on the home just take out too big a chunk of the budget. There is no money for savings, giving, investing or other actions that could improve your financial situation.

When the house has become a big money pit, downsizing could be an option that would give you more wiggle room financially. You should only consider this huge step, though, if you are committed to using the extra money to improving your financial health or using it to pay off other debts.

If there is no plan in place for the money you will be no better off than you were to start with.

Owning vs. Renting

Selling a house, getting rid of a mortgage entirely and switching to a rental home is another form of downsizing that many people find financially liberating. There are a lot of hidden costs associated with owning a home. You are responsible for all maintenance, home owner’s insurance and property taxes.

When you choose to rent, all of those costs simply disappear as well as the stress of dealing with repairs. Renting can be a great permanent choice, or it can be a great temporary choice to help you while you are paying off other debts or working through a Christian debt settlement program.

Cheaper but Bigger

Some families have discovered that when they reevaluate their standards of housing, they can actually get a bigger home for less money. The closed minded ideas of having a home only in a certain neighborhood or only of a certain appearance can really hinder your efforts to find affordable housing.

Housing farther out in rural areas is almost always cheaper. Think outside the box and you might really like what you find.

It may be well worth foregoing certain luxuries to be more financially comfortable. This is a temporary dwelling, after all!

Family Concerns

If you have a spouse or family you must consider that they will all be very greatly impacted by a decision to move. Although you may understand all of the financial reasons that would make downsizing a great option, you must understand that the other members of your family may not have that same knowledge.

A move is a huge step that should not be done suddenly if possible. It should be discussed in depth with your entire family. When huge changes are sprung on people suddenly it can sometimes result in resentment. You do not want to sacrifice your family relationships for what looks like a good financial move. Take time to discuss this with your family and make an effort to understand everyone’s emotions on the topic.

Avoiding the Downsize

Want to avoid the stress of the move? Consider the option of renting a room of your home. That mother-in-law suite could be the exact solution to help you navigate debt troubles.

If that isn’t possible or doesn’t quite cut it, our Christian debt settlement program can help you resolve your credit card debts with a much lower payment. Complete the form on the right hand side to find out how what a debt settlement program would look like for you.