Making the most of assets DIY debt solution

Summary: This paper seeks to address the issue of making the most of our assets in order to help clear the debts we may have.

High interest debts

Debt can develop a life of its own. When we actually work out how much we are actually repaying on a high-interest debt and how long it will take to clear it, we need to consider all options to clear this as quickly as possible.

Property assets

The first thing may well be to consider the property we own. Some hate the thought of increasing their mortgage and releasing equity to clear other, unsecured debts. But simple financial sense suggests that we should compare the amount we are repaying on debts against the increase in mortgage payments and the relative length and total repayment figure on each. Making our asset work for us may make a huge difference to our finances.

Other assets

Many of us have no equity in our property, un-releasable equity or simply no property to release equity from. We need to look elsewhere. It may seem obvious but anyone with low-interest savings would be wise to use the savings to pay off high-interest debts. Maybe we could downsize our car. Or sell some valuable item we own. Even eBay or a car boot sale may generate funds to clear a debt that won't go away.

Non-tangible assets

Leaving aside the more technical, accountancy definitions, non-tangible assets may include making the most of your skills-set, your time or your network of friends and contacts may be seen as assets to be utilised. Creative thinking and brain storming sessions may raise opportunities we had never previously considered. Our time is a valuable commodity and needs to be used effectively - everyone has exactly the same amount.

Settling debts

It may be that we can utilise an asset in order to clear a debt. If we have fallen behind with debt repayments and simply cannot meet repayment levels requited, some creditors may well be willing to consider a lump sum settlement offer. Utilising the asset may go further than expected if we are able to settle a debt with a 1-off payment.

The above is provided as information only. does not provide debt advice. You must always seek professional advice before taking any action to resolve your debts.