How to Sell Assets to Pay Debts

No one thinks they will end up over their head in debt, yet it is a common occurrence among Americans. Most financial advisors will tell you to pay down your debt with a budget that makes you live below your means and pay it down over time. However, some financial advisors, like Dave Ramsey, recommend selling whatever assets you have that are not required to live to pay your debts as soon as possible.

Instructions

1

Identify the items considered "luxury goods," such as art, jewelry, designer clothing, classic cars and high-end electronic equipment. Get these items appraised or browse your local ads for similar items to get an idea of how much your luxury goods are going for on the market. Place an ad through your local newspaper, an auction website or online ad listing site to sell the items. Make sure you pay all applicable fees and taxes to your local and state governments on the money made from the sales.

2

Identify property you can live without. This includes but is not limited to land, vacation homes, recreation vehicles, second or third vehicles, entertainment media and furniture. Get the property appraised or check its value by comparison shopping online, in your local newspaper classifieds or other advertisement listings. List your property for sale through one of these venues. Pay the appropriate taxes and fees to your local, state and federal government as applicable.

3

List the investments you have, such as stocks, bonds, 401ks and mutual funds. Calculate how much money you currently have tied up in these investments as well as the fees and penalties for cashing out on them now. Contact your broker to conduct this withdrawal as he or she will best know how and when to perform this transaction, as well as how to pay the aforementioned penalties, fees and taxes.

4

Total the amount of money you have made from selling your assets, minus fees, taxes and penalties. Use the money to pay off your debts via two options: either pay off your debt from highest to lowest interest in order or from smallest to largest debt consecutively.