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28-01-2020

What are the Alternatives to Taking a Loan?

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Financial Blog

People often connect having debts with low income and think only lack of cash leads to problems, however, people of all financial backgrounds may experience some issues from time to time. So, no matter how much money you earn and how smooth everything is, you may get ‘surprised’ by unexpected costs any time. So, how to deal with these situations if you don’t possess enough cash at the moment.

If we look at the figures, more than half of the US population are indebted and even think they will have a debt forever. It sounds really bad, no matter what’s your situation and how much property you own. Especially urgent needs lead people to take loans with extremely high interests and as a result, being unable to handle them, they collect debts and this goes on and on.

However, no matter how urgently your problem needs to be addressed, you need to consider all your possible options and understand which one you will benefit most. So, before jumping into the process of applying, think about what you how and how you can use your assets to improve your situation.

How to use your house to get rid of debts?

As Robert Kiyosaki says, ” Your house is your biggest asset” and it is probably the biggest one for most people. So, if you are knee-deep in debts, you may consider downsizing your house as it’s better to live in a smaller house than keep the size you used to have for your kids and other members of the family, who don’t live with you anymore. Besides, maintaining a big house also requires a lot of regular investment and by moving to a smaller one, you will cut down your monthly costs as well.

Your vehicle may take you to be debt-free again

Living without a car is extremely hard nowadays, especially if your workplace is far from your house and you need to commute each day. So, selling your car can be a bad decision, but you can still try to cut down its costs by using a more affordable one. We all know that bigger and powerful cars require more maintenance costs and you can significantly decrease your regular expenses by selling it, buying a one with less powerful engine, and you will not only be able to take care of your debts and expenses, but also spend less money later on.

Check your house

Most Americans are crazy about diamonds and other expensive jewelries and some people have artworks at home that cost a lot, and once you find yourself in serious trouble, it is not worth keeping them anymore. You can even sell some old clothes and items, as overall, they may bring you a significant sum that will be just enough for getting rid of your debts.

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Written by author-twitter Jodie Adams

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