Calculator US7 · When Rates Go Up. The American Debt Handbook
Sell the toys: what it does to your debt
List what you own and don't use, with running costs like insurance, storage, registration and maintenance. See the cash, the money it frees every month, and how fast it clears a debt three different ways.
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This calculator goes with When Rates Go Up. The American Debt Handbook by JP O'Connor. The book explains what the numbers mean and what to do next.
Selling something you don't use gives you two separate wins, and the smaller one gets all the attention. The cash is the small win. The bigger one is that from next month you stop paying for it: insurance, storage, registration, maintenance, and the loan payment if it's financed. That money keeps arriving every month.
The three lines in the table show what happens depending on what you do with each win. Most households do the first line. The last line is usually worth far more.
Don't forget the storage unit
Paying every month to store things you don't use is the purest version of this. It has no sale price, so it's easy to overlook, but it frees money every month from the day you empty it.
If you owe more than it's worth
Boats, RVs and cars bought new often are. You have to cover the shortfall before the buyer gets a clean title. It feels like a loss. Compare it with what the thing costs to keep each year.
Get the payoff amount, not the balance
The balance in your app isn't what it costs to clear the loan. Ask the lender for a written payoff quote with a good-through date. It includes interest to that day.
Check this one. Sale prices are guesses until someone pays. Check what the same make, model and year actually sold for, not asking prices. If there's a loan on it, the lender holds the title until it's paid off. Ask how they handle a private sale before you list it.
Get the full handbook
United States · 150 pages · JP O'Connor
When Rates Go Up.
The American Debt Handbook
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