Should You Sell Your Home to Knock Out Debt?


Experiencing debt can be among the hardest things anyone has to deal with in their daily lives. It can contribute hugely to stress, depression and anxiety, especially for those with wider responsibilities such as a family who depend on them for their own survival. There is hope for dealing with debt though – and ideally, it’s best to do so before things get too out of control. A little bit of debt can easily snowball into something bigger if you’re not careful.

Consider your options

Before making any big decisions that could affect certain aspects of your life, take a step back for at least a few moments. Considering options is crucial in any decision-making process, but it’s even more important to remember when you’re under extra stress due to your situation. There are multiple ways to alleviate the effects of debt that may depend on different factors, and there’s no “one size fits all” solution.

Understanding different types of debt

Your decision-making will likely depend on the type of debt you’ve accrued. Not all types are inherently bad for your credit rating and though they can be as stressful to deal with as any other kind, there are clear paths out of them. Students, for example, are notoriously known to be in debt or constantly ‘poor’ both figuratively and literally in terms of the large student loan they may have taken out to enable their studies. But there is no immediate pressure to pay this off afterwards, and repayments are perfectly manageable once one finds themselves in a decent job.

Having a mortgage, meanwhile, is similarly a kind of manageable debt that one can pay off in sustainable fashion. It still presents an element of stress in daily life, but with a stable income is something easily paid off in the long run. Furthermore, the value of your property is very likely to increase exponentially over time, meaning from a certain point of view you’ll have made a profit on your initial debt.

All of which is to say, there’s no need to panic with certain kinds of debt. Many are paid off over longer periods of time and don’t require large scale selling of assets to solve. But other kinds of debt are more negative – specifically, those that decrease in value over time, such as payday loans and (the big one for many people) credit cards. The longer you take to pay them off, the worse it might be. This may be the type of situation in which you start to consider what sort of lifestyle changes are necessary to get yourself out of a negative spiral of debt, and it’s where selling your home may start to become a serious consideration.

Is selling your home a viable option?

This starts with a simple question: does your home’s value outweigh the amount you owe? Some may be fortunate enough to have a valuable home they acquired in better days before getting into serious debt and selling it may therefore be a straight answer for solving money troubles. Others might have a bit of math to do before deciding whether to go forward. If you’re currently paying a mortgage, you can work out the value of your home by subtracting your remaining balance from the property’s current market value. Consider other factors as well, such as whether your financial problems are long or short term, and how important it is for you to stay on the property market.

Should you decide this is the best option for you though, you’ll want to get the ball rolling quickly. No need to delay once you’re sure this is the right decision for your circumstance. Here’s how you can sell your home fast.

Different ways of selling

At first people tend to think they need to go through estate agents or online portals to start the home selling process; it can seem like it might be a long and arduous process, even perhaps an overwhelming one. It doesn’t have to be this way. Some companies have recognized these common obstacles for home sellers and instead specialize in helping them achieve fast sales.

Getting market value in a fraction of time

Typically going through the estate agent process can take at least six months, so that may not be a viable solution when you’re looking to sell specifically to knock out your debt. By going the alternate route of a company that guarantees to sell your home fast you’ll instead get a free quote within 24 hours and could find your house sold near market value within the following 7 days, with no extra agent or solicitor fees to pay.

As this presents such a quick turnaround, it’s even more reason to be sure this is the right option for you. But if it is, and you’re in desperate need of selling fast, then it’s time to get the ball rolling today.