Homeless or loose current house? Downsizing and/or moving to cheaper places could go a long way. Yet loosing current level of housing is what most people think want to avoid.
Either work, but homeless is more absolute. For some downsizing means moving into their car and for others it means moving into a 3000 sq ft house, with a smaller pool, in the third nicest neighbourhood in town. But yea, losing your house and being forced to drastically downsize against your will is no doubt traumatic in both cases.