“Money makes the world go ‘round” is a common adage for loan proprietors. Whether they are specialized in a unique type of loan like title loans or home equity loans—they are there to give you money, for a return of that cost plus interest. Many times, people take a loan because they need the money, and later they can become stuck in a cycle of paying back the minimum balance and the interest continuing to grow the debt. If enough of the payments are missed, there are a variety of things that can happen, including going to court, repossessions, or garnished wages. But it is not all bad. If you are looking for some unconventional ways to pay off your loans, these are five particularly good ways to gather the extra income to pay off your debts fast.
Look at Your Mortgage
There are a lot of options available to you for accessing some of the value of your home. Most of the time these tend to be equity loans on your home. Which means your home is used as collateral to borrow a large lump sum of money. Most people do this when they face medical bills or what to do improvements. However, these sorts of loans aren’t great when you already have other outstanding loans because they need to be paid back as early as possible. Instead, have a look at a reverse mortgage.
Don’t get mixed up, these are also a type of loan—but they are a loan that highly benefits the borrower. They work by allowing you access to a portion of your home’s equity, giving you the freedom to pay off your other loans with this equity transition. What makes this work as an unconventional way to pay off your loans is that since it’s reversed, that means that you will not have to pay back the loan until you leave the home or pass away. Further, payments do not need to be made until that point comes around.
Sell Your Stuff
Another method you can use to pay back your loans quickly, is to utilize the stuff around your house—sell it! Look, we all want to be able to keep every gift and every unopened hobby set, but right now paying back your loans should be the top of your priority list. This doesn’t mean that you should consider selling family heirlooms, but it does mean that the pottery wheel may be a good choice to remove. These days you can even sell your stuff online using sites like Etsy, eBay, LetGo, or any of the other neighborhood selling applications in your phone.
Sell Your Stocks
If you have had the ability to buy stocks in the past, now is the time to cash out. It’s unrealistic to wait for years for a good time to sell. Selling at the next peak is how you make the most of your past investments. Or if you have invested in businesses in the past, perhaps now would be the best time to collect on that good faith. Avoid currently investing however, since the idea is to bring your debt down—not engage in a new business venture that seems promising.
Sell Your Second Car
You and your spouse are getting on in age, and really—how often are you apart now? To help pay off your loans, consider getting rid of your secondary car. Not only will you not have a payment every month but think of all the gas money and maintenance costs that will be saved too. Or consider cutting down on your costs during the month by lowering the number of times you leave during the week. Carpool is good for the environment and great for your wallet.
Get a Renter
Other than downsizing your home, another great way to make money from your house is to get a renter. Becoming a landlord can be a mixed bag, of course—but for the right cost, a college kid or even a senior may be happy to rent from you. The closer you are to amenities, the better if you’re looking to rent.
Alternatively, you can think about renting out the property to places like Airbnb if you are not around much. Or you can rent the area to be used as a venue if it’s beautiful. There are a lot of ways you can make money on your home to help pay with your debt, you just need to get creative.
