Debt, Debt, and more debt! I am sure a lot of people can relate to this word, yet also dread hearing it at the same time. Unfortunately once debt piles up, it can be very difficult to get out of a situation like this. Our family’s debt load has been more than we would like at times and I have become even more committed to finding methods of improving our level of debt. This time, I wanted to discuss the way that downsizing can help people pay off their debts.
Reading some other stories related to how others have managed to successfully pay off their debt, I found an important piece of information that relates to the amount of time devoted to paying off these debts and in stances, where people have been more successful. First off, being dedicated to continue paying off these debts is key. More specifically, as data would suggest, typically debt-paying often tapers off around the 18 month mark. Through knowing this information, if we can stick our plan of keeping on track with these payments, then our ability to pay off their debts will be much more effective.
Overall, it is important to note that paying off debts is a lifestyle change, not a short term fix. By adjusting our behaviours and attitudes towards debt payments, then it is more likely that his process can be done! Let’s look specifically at the act of downsizing as a strategy for accomplishing this goal.
Downsizing & Starting in your Home
One way to help pay off some of your debts is to take a look around your home. You don’t have to move to downsize your home. You can look at freeing yourself of some of your possessions to not only de-clutter your home, but you also can earn some money to put towards your bills by selling these items at a garage sale or online even.
If you are moving to a smaller home, a condo or an apartment with limited space, it may be even more necessary to downsize in your current home and prior to the move. While garage sales are still a good method for getting rid of some of you assets, an estate sale could also be an option. Having these sales can be an effective method of sell off larger items as well as possessions that may fetch a larger price.
Here are some questions you can ask yourself the next time you feel the need to make impulsive or unnecessary purchases.
• Do you have a place for this in my home?
• How will you use this item?
• Is this item a need or a want?
• If I’m moving, do I really want to pay to re-pack this item?
• Can I maintain/fix items I already have, instead of buying new?
Likewise here is a list of questions that you can also ask yourself about whether to sell some of your items.
• When was the last time you used/wore this item?
• Does the item still serve a purpose in your life?
• Can someone else use or benefit from this item?
• Can you honour the memory of this item by taking a picture of it, for example?
During the downsizing process, it may be difficult to part with certain possessions and that is why referring to these sets of questions can reinforce your ideas about the importance of downsizing and ultimately paying down your debt as a top priority. However, it’s worth it to be frugal sometimes as you can save more that can go towards paying off your debts.
Overall, if you can evaluate and curb your spending, you can become a more effective saver – allowing you to access more money for paying off your debts instead. Even if you are only saving a little bit of extra money here and there, this can add up over time and help you out in the debt department also. Take a look around your house and think carefully about whether or not you can sell some of your current possessions – while this can be tough, it also can be done. The way I look at it, in the long run you are more likely to feel even better after you have paid down your debts and that way you won’t even miss the items you sell and the items you choose to go without.
Good luck and stay strong!