Selling Your Debt
Filed under: Money Making Tips — Gloria and Alpha @ 1:00 am
This post is most relevant to people with business asset debt. If you’re in business, and you have debt attached to some of your assets, consider whether or not you need those assets in the immediate term. If not, there is the possibility of selling the assets with the debt attached to free you of this debt until you’re in a position to take on a healthy level of debt again.
This is particularly applicable in the current economic climate.
Where there are any assets that you could temporarily do without, consider selling them, along with the attached debt, for a price that a buyer would be willing to pay. This may take some negotiation, and the paperwork will have to legally transfer the responsibility for the debt over to the buyer. I suggest obtaining legal advice before you enter into such an arrangement.
There is also the valuing of the asset at market value. It is best to pay the fee of an objective third party to do this, in order to save yourself potential problems later. The relatively small fee is worth it (and it’s tax deductible).
The other alternative is to sell the asset, and use the proceeds to pay off the debt. This gives you a clean slate and you can focus on making money to buy a similar asset outright, without any debt attached (depending on the asset, it might be a significantly reduced amount of debt rather than debt free).
Make your decision and stick to the result. That is, once you have the cash to repay the debt, make sure you do just that. There’s no point in turning one complicated situation into a bigger complication.
Remember, there are always options, and no matter what the economic climate there are always the right buyers (those that are willing to pay fair market price).
More Information on Eliminating Debt