Serina I really enjoyed your info thanks. The issues you raised are spot-on!

With regard to paying for storage; After a year of storing overflow items that would not fit into a smaller home we moved into I realised I had paid more for storage than the cost of the items in storage and I would have been better off just throwing them away when we moved and selling them at a loss would have been even better!

More interesting still is the Math behind selling something you paid big bucks for at a significant loss and how you can actually be better off from doing so. Check out this example...

If you bought a fancy home theater system for $5,000 with a Credit Card at 21% and are paying it off at $100 a month, if you sell it for $2,500 (big loss), and pay that money off the Credit Card, if you keep paying $100 a month you will be out of debt in under 3 years and save over $6,000 in interest!

You're better off by more than you spent... Who would have thought it!

Thanks for your article. I write on financial topics on a regular basis and I will recommend your blog to my readers.

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You're so right, de-cluttering is one thing, but not buying unnecessary stuff in the first place is so much better, yet for some reason more of a challenge.

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Dear David,

Are you the budgeting guy? If so I've read your writing and used your product. And I do recall you writing about how selling stuff at loss to pay down debt can be a good tactic. While I didn't have big consumer items, it was a big ah ha moment for me reading what you had written.

Thank you for doing the maths on the credit card example. It shows very clearly how holding onto stuff isn't useful. And I hear you re the cost of storage units. Paying to store stuff is a big wakeup call.

Serina

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