NerdWallet's Smart Money Podcast What Happens When You Trade Your Home for a Debt-Free Start?
Aug 14, 2025
Exploring the pros and cons of using home equity to erase debt, the hosts discuss a listener's dilemma about selling their house while juggling a $55,000 debt load. They delve into crucial financial trade-offs and the potential long-term effects of such a decision. Additionally, insights on navigating back-to-school spending highlight rising costs and practical money-saving strategies. Personal stories about financial planning underscore the need for informed decisions amid fluctuating markets and emotional pressures.
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How Variable Income Creates Lasting Debt
- Delius accumulated large credit card balances after income drops and extended credit limits encouraged spending.
- Long stretches of unstable entertainment income can turn short-term lifestyle choices into long-term debt traps.
From Pandemic Spending To A Snowballing Debt
- Delius bought a home with a large down payment taken from savings after leaving Broadway.
- He later used credit during grad school and the pandemic, which started his debt snowball.
Bounce Back To A Stable Salary
- Delius secured a stable salaried role in Burbank paying $90,000 after years of freelance instability.
- He now hopes to leverage steady income to regain financial freedom and buy in California.
