Sell Off Assets
Sometimes when times get tough, you need to find money tied up in things you already own. If you own, or currently pay off a house, for example, that is one of the biggest assets someone could own.
Selling your home (or any other asset like a car) is a big step but could very well pull you out of debt.
The first thing to do if you’re considering selling off your assets, is to work out why you want to sell. If it is to get you out of debt, you may want to consider the following questions before you go ahead and sell:
- What condition is my asset in?
- What is the market like?
- Will I get a higher or lower price than what I paid?
- Will I be taxed on the sale of my asset?
- What will be left over from the sale of your asset, minus expenses and paying your asset loan off?
- Will the sale of your asset cover the debts you need to repay?
- How till the sale of the asset affect other aspects of my life?
The last question is perhaps the most important.
If you’re going to sell your home, where will you and your family live? Will you be downsizing to a smaller home? Or will you be renting?
Further to this, if you receive any benefits from Centrelink, will your payments be reduced based on your sudden receipt of a large sum of money?
Sometimes selling your asset could be the best decision you ever made. Other times, you may get yourself out of financial trouble simply by looking at other options, such as renting a room out.