Falling into debt can be a slippery slope, which can quickly spiral out of control. You owe money, you borrow money to pay the first lot back and due to high interest rates, you then owe even more money and so the vicious circle continues.
One day you wake up and the debt that was once hundreds of pounds is now thousands, if not tens of thousands.
Being in debt is a scary time – it is likely to make you feel stressed and want to bury your head in the sand, hoping it will go away – it won’t. You need to face it and tackle it before it gets even worse.
But how do you do it? Well, you have several options when it comes to paying off your debts.
How to pay your debts
1. Pay your debt off in installments
One choice could be to pay your debt off in installments that are agreed between you and the creditors. However, your options do depend on the amount of money and assets you have.
Plus, you need to think about whether paying the money you owe off will leave you with enough for those ongoing expenses you have outside your debts. Will you be able to put food on the table and keep a roof over your head, for example?
2. Sell your home
If your answer to the previous tip is ‘no’ then is selling your home the best option?
Well, your house is one of the most expensive assets you have – you could sell everything within it and still not make anywhere near the amount you would get for the home itself.
You have plenty of money – which could take you from deep in the red back into the green – but it is tied up in the bricks that surround you.
Freeing up this money will enable you to get back on your feet and start again.
It could be used to pay off your debts and subsequently relieve you of the stress and worry that has come with it. You could then rent or move in with friends or family until you are in a position to buy again. Just make sure you know where you are going to live before you do sell your home.
When you are looking to sell your house to pay off debts, you don’t want the process to drag on, as it often does when you go through estate agents. The longer it takes for your house to sell, the higher your debts will get and the less you will be able to pay off.
The quicker you sell your home, the more of the debt you can pay off and the sooner you can put it all behind you. How do you sell your home this quickly?
Well, quite easily with trusted cash buyers such as We Buy Any Home – they could have the money to you within a week. Why not fill in the online valuation form and see how much you can get? You are under no obligation to continue and once you have a price you can do some sums and work out how you can use it to pay off your debts and get yourself back on your feet.