Sell Property Quickly To Pay Off Debts

An undesired circumstance which is very common where there is a need to sell property to pay off debts. Being in debt happens to most people at some point, but it’s incredibly worrying. Maybe it happens because of needing a payday loan? Or maybe it’s related to having credit cards or having spendt a lot on health or a new baby. No matter the cause of debt, you can end up asking yourself “should I sell my house to pay off debts“. But is this a good solution to debt? Is it even possible to sell your property quickly enough to make the money needed to pay off your debt?

Your approach to selling determines whether you’ll be able to get the cash you need in time. In this guide to selling your home to pay off debts, we’ll explore how you might get into this sort of situation and what choices are available. We’ll explain how you can make a fast sale to a property company like us, and what to expect.

How Fast Can I Pay Off Debts If I Sell Quickly?

You may never have imagined getting into debt, but when you’re in a transition period of your life you can find yourself facing unexpected financial hardship. Separating from a partner, dealing with bereavement, and losing a job can all influence the likelihood of debt. Indeed, even diligent savers can find themselves in deep debt that they don’t have the money to repay. At this point, it’s typical to start thinking about selling property to get the cash you need.

If you’re successful in selling your house quickly enough, you can pay off substantial debts virtually immediately. However, this is not a decision anyone can make lightly. It’s smart to plan where you’ll live, for example. Will you move in with a friend or family member? Or can you afford to rent a property, paying the deposit and first month’s rent up front? Alternatively, can you downsize and buy a smaller new home?

Reasons To Sell Your Property To Settle Outstanding Debts

As we’ve just considered, anyone can end up in a place where they need to consider a fast property sale to pay off major debts. That said, the specifics of your own situation will impact on the right approach to selling. Here are three common reasons for accumulating debt and why considering a sale can best help in each case.

Mortgage Payments Are Too Much

Property market experts say that your monthly mortgage payments shouldn’t be more than a quarter of your monthly salary. If you’re paying more than this each month, you might want to consider selling. If you remain in your property, you’ll be spread thin with little to no leftover money for debt repayments. In contrast, life in a smaller home or in a rented flat might make debt easier to deal with.

Difficulty Managing Money

Not all of us are naturally great at managing money. This is rarely done well when we were growing up. Is this a struggle for you? Debt can sneak up on you and leave you with no option but to sell. For most people, this experience teaches them how important money management is, so you’re unlikely to repeat the experience when you’re in a new place.

Unforeseen Financial Issues (Short-term and long-term)

None of us can predict every twist and turn in life. We experience unexpected events in life that can land you in a heap of debt. This can come in the form of selling your home due to divorce, relationship breakdowns or seperations or employment difficulties, or maybe you’ve had to make a big purchase of some kind. In these sort of cases, the easiest way is to convert your property into money and pay off your debts.

Is Selling Your Home To Us To Pay Off Debts The Right Thing For You?

How Much Will I Get If I Sell Quickly?

Making a quick cash sale to a property buyer will result in less money than your home’s market value. However, you’ll save money on traditional estate agent fees as well as on legal representation, and you’ll get instant access to the money you need to begin putting debts behind you.

We offer free valuations, too.

Do I Have To Move Out When I Sell My Home?

Typically, making a cash sale means leaving your home behind. There’s always a slim possibility that you could rent your old home and stay on there, just as a tenant. This varies depending on the needs and preferences of the property owner.

Will Selling My Home Fix My Credit Rating?

People are often scared that choosing to sell their property will make a massive dent in their credit rating. However, if your credit rating to date is pretty good, there shouldn’t be any real blow to your credit rating. Plus, if the sale is what allows you to pay off your debts, that will actually enhance your credit rating rather than damaging it.

If I Sell My Home To Pay Off Debt, What Happens To My Mortgage?

You have little choice but to sell if you can’t manage to pay your monthly mortgage payments, but you’re still fully responsible for them until your sale is officially completed. Once you’ve sold the property, you’re then required to use the money from the sale to pay off any leftover balance on your mortgage.

Can I Sell My House Before My Mortgage Term Ends?

Yes – you can sell your property any time, if you can afford to do so. That said, there are costs if you’re looking to redeem part of your mortgage, so it’s wise to look at the mortgage’s fine print. No matter the outcome, though, making a quick sale to a cash buying company is an efficient way to minimise outgoing costs.

How Quickly Can I Sell My House?

Every sale is different, but we’re used to dealing with people who want to sell a house or a flat as fast as they can. We’ve been known to wrap up the process within just 7 days if need be. To find out what we can do for you, contact us today. We’ll do a quick valuation based on key details about your property, and you’re free to reject or accept our offer as you see fit.