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In: Finance

what would you have if you sold everything you owned and paid all your deft? financial...

what would you have if you sold everything you owned and paid all your deft? financial management and controlling

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Answer :

If you sold everything you owned and paid all your debt, then you would have the differential amount, if any, meaning amount received by selling everything you owned and the amount used in paying all of your debt.

You might be left with nothing in hand. Therefore, the decision to sell off everything you own is a risky situation. Followings are things that should be considered for paying off debts and before selling assets :

Selling assets to pay off or clear debt

In certain circumstances it makes financial sense to release any money locked away as an asset to help you during times of financial difficulty, to reduce or clear debts.

If you have assets that you’re willing to sell, such as a car, watch or other valuable items, you could consider selling them to release the money and use it to help you while you’re struggling.

Selling your assets to pay off debt can be tricky. Depending on the asset, there may be unforeseen costs. Cashing in your savings may not completely deal with your debt problems. You may, in fact, have better options to eliminate your debt without losing your assets at all.

Considerations before selling assets

Here are some tips when looking at selling your assets:

  • Always ask permission of joint owners
  • Get a few valuations before you sell to make sure you’re getting the market value
  • Research online, if possible, to help you find out the current market value
  • Make sure you’re aware of any fees, penalties or costs in selling the item before you do

If you’re considering selling assets to pay off debts, you must be the owner of the item or items. If you have a car, bike or caravan bought on a hire purchase or conditional sale, or you’ve used a car to get a logbook loan, the vehicle belongs to the finance company until you’ve made the last payment. It’s against the law to sell it until you’ve paid off the finance in full.

Downsizing your house to pay off debt

You could consider downsizing or selling your home and putting the money from the sale towards your debts. However this may involve family members, if you own the house with someone else, and careful consideration must be given to the benefit of doing this.

Before making any decision to sell your house, you should consider the following:

  • Will downsizing clear all the debt?
  • Will you still be able to afford essential housing costs when you’ve downsized?
  • Do you know how much the fees and selling costs are?

Selling your home is a big step and you should get advice before deciding to do it.


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