Rapid Debt-Reduction Strategies (Financial Freedom Series)

In the previous post, one of the lists that was taught to those who want to get out of debt was a list of things that are owned. In this list, it was suggested that the present value of each item be listed. Aside from that, it was also suggested that a very important decision be made on each item. Each item needed to be classified into two categories, whether it is needed or not needed.

From the list, those items categorized as no needed but wanted to be kept must also be indicated. They must be clearly distinguished form those that are still wanted to be kept.

With this information a list of things to be sold can intelligently be made out of it. As this list is made, close attention must be given to items which money is till owed on. The loan agreement on those items should be carefully and thoroughly read. Before that item is sold, it must be made sure that there is no restriction which forbids selling it before it is paid off. If you are unsure, it is recommended to consult one’s attorney or the lender.

Be rational. Be careful not to get caught up in the spirit of selling and mistakenly part with something that is really needed. Good judgment must be used to make sure that something that may even be the primary form of enjoyment during the time of getting out of debt is does not end up being sold.

Below are some questions to ask:
1) Do I really want to sell the item?
2) Will I enjoy having the item more than I will enjoy paying off the portion of debt that its sale would accomplish?
3) Will the item become of greater value to me during the months ahead?
With this simple three-step test, making quality decisions should easily be made as to what are to be kept and what are to be sold.

Now, begin to make the list of things that will be sold. Remember that the money that will be raised from selling the items in the list will be used to make a major paydown of the debts that are now owed.