Skipping your morning Starbucks and quitting eating at restaurants won’t clear your hefty amount of debt. It is possible, even if you owe tens of thousands in debt repayments, to get out of debt within a year or two, but it will require some life-changing sacrifices.
Here are some of the most extreme yet effective things you can do if you’re serious about clearing your debt quickly.
Sell family heirlooms
If you’ve inherited valuable family heirlooms, such as jewelery, now is the time to cut your sentimental ties. It may be harsh and ruthless, but imagine what your late grandmother would make of your current financial situation.
She would probably advise you to sell that old jewelery box full of her past treasures and clear your debt so you and your family can live happy and stress-free lives.
Get rid of your second car
Or both cars, if you’re really serious. If you absolutely need a car, then sell yours for a model with a smaller engine so you can save on fuel and insurance. If you have two cars, then you should at the very least get rid of one. Seriously consider whether you really need them both. Are there ways you can get around having just one car, or not even owning one at all?
If you live in an area that’s well connected in terms of public transport, or has a lot of amenities within walking distance, now is the time to sell your car. It’ll take a huge chunk out of your debt and dramatically reduce the time it takes you to clear it, so it’s something you really need to consider.
Downsize your home
Moving house into something much smaller and cheaper is perhaps the most extreme step you can take towards getting out of debt. A quick sell will provide you with cash, so you can buy a much smaller house outright with money to spare. The spare money can be used to repay some of your debt, whilst the money you’ll save on monthly mortgage repayments will also contribute to paying it off.
If you’re not quite at the stage of desperation to consider these extreme methods, then you need to take steps to ensure your debt doesn’t spiral out of control to the extent that you end up having to implement our tips. To find out how you can start managing your debts, check out this website for some expert advice.
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I fully agree with points 2&3. I’m trying to downsize from a Camry to a Corolla or Civic now to save on gas.
We are also planning on downsizing our house if I get relocated due to my job. It would cost $20,000 – $30,000 in Realtor fees if we made the change without the company paying for it 🙂
That is definitely a great strategy and I am sure your finances will thank you 😉
You mentioned that cutting back on some of your expenses will not get you out of debt quicker, but I disagree. Reducing your monthly expenses by $500 is the same as earning an extra $500 every single month. Yes, it’s not as much as selling your car or jewelry, but its fooling to approach debt repayment without tightening your budget first.
I definitely agree with you on this. I think that many times we discount the huge effect that having and sticking to a budget will have on our finances…we are always looking for the home run!
I would get rid of the thing that got me into debt in the first place, car and other stuff, downsizing is quite extreme but if you are really struggling with the mortgage better cut your losses now than suffer longer.
That is a great way to look at it. Many times we won’t even consider getting rid of things to be an option when we are struggling.
these are extreme measures. I would focus more on making a monthly budget that survives in the long term.
Definitely! There is no point in doing anything extreme if you don’t even have the basics covered.