Things to do before paying down debt

I know what you are thinking, the first thing you should do before paying down debt is to take out more debt and go on a vacation because the next 5 years of your life are going to be miserable. Not exactly, if by miserable you mean stress free then sign me up. From what I gather on the streets, in my office and all over the news people don’t like debt. But I will continually have conversations with people who feel that their debt is a “tool”. The conversation turns to “good” debt verses “bad” debt.  I will leave this for another blog but really “good” debt???

Back to the topic at hand and please consider the following actions to take before you begin to pay down your debt.

1. Have an emergency savings of at least $1000 to protect you from going further in debt

2. Debt snowball, avalanche, highest interest or largest amount it does not really matter what your strategy is rather you have a plan of attack that works.

3. Talk to creditors to lower interest rate to help you pay down debt faster

4. Get on a budget

5. Keep saving, don’t forget that life still happens and only a savings account can keep you from going back into debt.

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A time to sell

If you are in debt, like a majority of us are, now is a great time to sell some stuff. The dog days of summer are upon us and the early spring cleaning garage sales have come and gone. What better way to pay down some debt or begin to fund that back to school envelope with some good old fashion selling of junk. As the saying goes “one man’s trash is another man’s treasure”. Here are 5 ideas on how to successfully sell some junk:

Leave the price tags off.  The truth is that we often devalue the “junk” we are selling. Simply ask what they would like to pay. If it is a ridiculously low offer laugh and say no thanks.

Go in with the neighbors. A neighborhood sale is much more effective in bringing the masses to your sale. It also will allow for a shared cost in time and money on the marketing of the event.

No need to pay for advertising.  Social media is a great way to create a buzz for your event for free. Also checkout craigslist, www.yardsalesearch.com, and some local newspapers that offer free advertising.

Place your big ticket items in the front. This way you can lure those that drive by with the items that they are looking for ie. Lawn mower, tractor, bikes…..

Have fun! People go to sale events not just for the deals but for something to do. It is also fact that people will buy from others they like so your ability to entertain them will help drive up your sales.