Being in debt can feel like being trapped under an avalanche. There’s no way out and every time you try, more piles on top of you. But that’s because people who try and escape debt often use poor tactics. For instance, they might simply borrow more money to pay off what they already owe. But of course, that just leaves them with another amount from a different source weighing down on their heads. So what are the real options when you’re looking to escape the debt nightmare? Here are some of the best ideas.
Use Your Financial Assets
The best way to escape debt is to use the financial assets that you already have. For instance, you can start by thinking about selling your home. If you own your home, then selling it is a great way to free up some money that you can then use to pay off your debt. The issue, of course, is that if you’re using the money in your house, you need it to sell fast and this isn’t always easy. Particularly if either the market is in a poor condition. Or, worse still, your house is in a poor area. Either way, it’s a problem that could prevent you from getting the money you desperately need to free yourself of debt. But there is an answer to this issue. You can use a real estate investor franchise. They’ll buy the home off you at the market price in a quick sale. You won’t have to worry about your home being tied up in a long sale process.
Of course, you’ll probably have other financial assets outside of your house. For instance, you might own a car. If you do, you can rent this out to people to earn a little money each day or week. While it might not seem like a lot at first, the amount you make will add up. When you’re escaping debt, every little helps.
Aside from this, you can take other valuable items to a pawn shop. You’ll then be able to sell them items to gain money you can use to pay off the debt. When you’re in a better financial position, you will be able to buy the items you lost, back.
Use A Consolidation Loan
You might also want to look into using a consolidation loan to pay off the debt that you owe. This is beneficial if you’re debt is divided into different sources. If you owe a lot of money to different people and businesses, a loan like this can bunch it all together. In theory, this makes it easier to pay. It also shaves off some of the debt because the loan company pays that for you. Then your debt becomes another bill that you pay off at the end of each month. The issue is the interest rate. You need to use a consolidation company that freezes the interest that you owe. If you do this, you should find that you’re debt free in a matter of months. Particularly, if you know how to budget your finances.