Sell Your Stuff to Pay Off Debt (2024)

Sell Your Stuff to Pay Off Debt (1)Author Courtney Carver

Sell Your Stuff to Pay Off Debt (2)

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The purpose of a yard sale is to make money selling your stuff. In my opinion, having a yard sale is a big pain in the ass, so do it one time and do it right, and only if you are in debt.

I generally recommend giving your stuff away as you unclutter your life. The only exception is if you carry any debt. This might be credit card debt, car debt, student loans, medical bills or even a mortgage. If you owe someone money, a yard sale is a great way to work on the debt. A yard sale will also speed up the process of simplifying because, believe me, you will only want to do this once.

Here are the three steps to ensure a successful yard sale.

  1. have a system
  2. commit to paying off debt with ALL profits
  3. immediately post high priced items that don’t sell, on craigslist.org, ebay or a local classified site and have a pick up service scheduled to come at the end of the yard sale to pick up the rest.

#2 and #3 is self explanatory, but you need a great system for the big day, and this is what I recommend.

Two weeks prior to your yard sale:

  • Divide & Conquer: Start three piles in your garage or an area that won’t get in the way of your day to day living. Section One: Sell, Section Two: Save (you want to save this stuff but you don’t want it in your house) and Section Three: Toss (it’s no good for you, or anyone else.) Between today and two days before the yard sale, you are filling these sections with contents from your home, shed, garage, attic, car, yard…where ever you have stuff.
  • Check out clearing the clutter for more tips.

One week prior to your yard sale:

  • Shine it up – clean everything up that you plan to sell and group it according to category.
  • Dump everything that you don’t plan to sell or save.

Three days before:

  • Make your signs. These signs should be bright and well written. My parents just had a yard sale and a friend told them to use red and yellow signs with red and yellow balloons attached to the sign. The color scheme drove traffic to their sale!
  • Buy water and refreshments to sell or give away as a “gift with purchase”. (we ended up giving away drinks at our yard sale, but in the proper setting, you could sell them.)
  • Make change at the bank. Be prepared for customers to pay for $1.00 items with a $20.00 bill. I recommend at least $80 in singles and $40 in fives.
  • Borrow tables.
  • Make pricing signs for each category. For instance, if you are selling clothing, “$1.00 Each or 7 for $5.00”. Encourage people to buy multiple items by offering a discount.

Day before:

  • Post yard sale announcements on free local websites.
  • Get a good night of sleep.

Day of:

  • Post signs in good locations.
  • Make lemonade or fill cooler with refreshments (for sale!)
  • Display your “stuff”. Take pride in merchandising items or style areas that look like rooms if you are selling furniture. Have sections to make it easier to shop, like children’s, kitchen, outdoor, exercise.
  • Work it! Be friendly and let customers know you are there to help.
  • Be more flexible with pricing after 12:00pm. Most of your business will be done by noon. People like to shop yard sales early!
  • That evening, say good bye to everything that did not sell and do not bring it back in the house. Hopefully, you have a pick up service coming for the leftovers asap!
  • Count your money and apply to debt.

We had our last yard sale in 2010 and it was our last yard sale ever. The feeling of seeing our stuff go, was far greater than the cash reward, but it did put a hefty dent in the car loan we had at the time.

Sell Your Stuff to Pay Off Debt (3)

Sell Your Stuff to Pay Off Debt (2024)

FAQs

How to sell items to pay off debt? ›

Considerations before selling assets
  1. Always ask permission of joint owners.
  2. Get a few valuations before you sell to make sure you're getting the market value.
  3. Research online, if possible, to help you find out the current market value.
  4. Make sure you're aware of any fees, penalties or costs in selling the item before you do.

Should I sell assets to pay off debt? ›

Generally speaking, you want to try to avoid selling stocks to pay off debt. But in some cases, simple mathematics pushes the needle in that direction. For example, if you have a lot of debt but it's at a 0% interest rate, there's really no hurry to get it paid off.

Should I sell stuff to pay off credit card debt? ›

I generally recommend giving your stuff away as you unclutter your life. The only exception is if you carry any debt. This might be credit card debt, car debt, student loans, medical bills or even a mortgage. If you owe someone money, a yard sale is a great way to work on the debt.

Should I sell things to get out of debt? ›

Reasons for selling assets

If you can't pay off all your debts, you could reduce them so that you can manage them more easily, or ask your lenders to write off the rest. It can help you to get out of debt if you have a low income or no money available.

What assets can I sell? ›

Physical assets: Physical assets are the most obvious type of asset that you can sell. This includes any property or equipment that your startup owns. If you have a lot of valuable equipment, you may be able to sell it to another business. You can also sell property, such as office space or land.

What is the best strategy for paying off debt? ›

Consider the snowball method of paying off debt.

This involves starting with your smallest balance first, paying that off and then rolling that same payment towards the next smallest balance as you work your way up to the largest balance. This method can help you build momentum as each balance is paid off.

Do millionaires pay off debt or invest? ›

Millionaires typically balance both paying off debt and investing, but with a strategic approach. Their decision often depends on the interest rate of the debt versus the expected return on investments.

How to make money to pay off debt? ›

By starting another job, whether it's a steady part-time gig or occasional side hustling, you'll bring in more money and give your budget breathing room. Pay off debt faster. Earning extra income can help you pay down debt balances faster, whether you make larger or extra payments.

Is it better to build wealth or pay off debt? ›

Investing and paying down debt are both good uses for any spare cash you might have. Investing makes sense if you can earn more on your investments than your debts are costing you in terms of interest. Paying off high-interest debt is likely to provide a better return on your money than almost any investment.

Should I sell crypto to pay off debt? ›

The IRS sees crypto as property, not currency. That means cashing out crypto for fiat currency is a taxable event, even if you're just paying off debt! I know, I know, taxes are no fun to think about. But ignoring crypto taxes can lead to penalties, interest, and other headaches down the road.

Should I sell gold to pay off debt? ›

It may be a good time to sell gold when the market prices are favorable, and you have a pressing need, such as high-interest debt that's costing you more over time. Selling gold during high market prices can maximize the return on your investment, providing you with a larger sum of money to pay off debts.

How bad is it to settle credit card debt? ›

Settling debt can have both a negative and a positive effect on your credit scores. You're most likely to see a drop in points up-front, but over time you can gain back everything you lost and more. Regardless of the setback, you can always work to experience the benefits of better credit.

Should I sell my assets to pay off debt? ›

Selling stuff to pay off debt can actually be good for your credit score in the long run. When you reduce your debt, especially high-interest credit card debt, it can make your credit report look a lot better. But if you sell everything off and have no assets left, it may affect getting loans in the future.

Should someone ever sell their investments to pay off debt? ›

While it's tempting to dip into your investments to pay down credit card balances, and it can make sense in certain situations, it's generally best to pursue other options to avoid the negative consequences of selling off investments.

What is a good debt to worth? ›

Generally, a good debt ratio is around 1 to 1.5. However, the ideal debt ratio will vary depending on the industry, as some industries use more debt financing than others. Capital-intensive industries like the financial and manufacturing industries often have higher ratios that can be greater than 2.

How do you sell something that you still owe on? ›

Private sale with negative equity

For example, if you owe $10,000 before the sale and your buyer will pay $9,000 for your car, you would pay the lender the $1,000 difference. Then you and a representative of the lender sign the title and give it to the buyer so they can get a new title and registration.

How can I make extra money to pay off debt? ›

Ways to make money off your home and belongings
  1. Sell old clothes online. Many online platforms make it especially easy to sell everything from clothes to furniture to baby gear. ...
  2. Sell unwanted electronics. ...
  3. Rent out your car. ...
  4. Rent out your home.
Jan 30, 2023

Can I use home sale proceeds to pay off debt? ›

With the money you make from the sale, you can pay off any remaining mortgage, as well as other debt that's been dragging down your finances.

How can I get cash to pay off my debt? ›

Take advantage of opportunities to earn extra income

Think about ways you can earn extra money outside of your day job. For example, if you're an artist, consider opening a booth at the local art fair to sell your work. This could lead to a second income that can help you pay your debts off faster.

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