What Kind of Property Can Be Used to Pay Off Debts?
Any kind of property can be used to pay off debts, so long as the collector has agreed to take the property as payment, but real estate is usually a more lucrative form of payment. Hear examples of property that can be used to chip away at large debt with advice from a licensed financial planner in this free video on personal finance.
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Hi. My name is Bill Rae. I'm with HBW of Florida. I've been in the finance field for well over twenty years, and I hear all sorts of questions. Today's question is, what kind of property can be used to pay off debt? In general terms, just about any type of property. If someone is willing to accept property to pay off a debt, then what does it matter? A used car, a baseball, a baseball collection, gold, silver. If we're assuming we're talking about commercial paper, obviously, banks are looking more for something such as real estate. But in general, any type of property that you own can be transferred for debt that you owe. And if the person that you owe money is willing to accept that property, well, then it's a done deal. Like all things, however, if you're going to do that type of transaction, I would suggest you get it in writing. Make sure you date it. Make sure you name the parties. Make sure you name what's going on. For instance, if I owe someone five hundred dollars, and I'm giving them a souvenir baseball in trade, I would make sure that I stated that I'm giving you X baseball for X amount of debt owed. Then I would make sure it's dated and signed. My name is Bill Rae. I'm with HBW, and we're helping you build wealth.