5 Reasons You Should Sell Your Silver And Gold Jewelry To Pay Back Debt
by Abdul Aziz Mondal Finance Published on: 10 September 2022 Last Updated on: 07 November 2024
One of the smartest financial decisions you can make is paying down debt as soon as possible.
High-interest debts like credit card balances, payday loans, and tax debts can be devastating to your financial health, eating up your monthly budget and holding you back from your plans.
If you have silver and gold jewelry lying around that you no longer wear or that you’d be willing to part with, using it to pay down debt is a great idea.
Top 5 Reasons For Selling Silver and Gold Jewelry To Pay Back Debt
#1 You Can Get a Great Price for Old Jewelry
Selling old silver and gold jewelry doesn’t have to be an unpleasant task. The bullion industry offers a robust marketplace for old and broken jewelry that can still fetch a great price based on its precious metals content. Places that once only purchased gold have even expanded their businesses to include silver.
If you’re worried your jewelry may be worth more than the bullion content because it’s vintage or antique, bullion buyers like Muzeum may be the place to go.
In addition to paying great prices for bullion, they also do a lot of work with collectors to place those rarer finds.
#2 Debt Costs You Every Month
Every month that you carry a credit card balance, it costs you. The APR (Annual Percentage Rate) advertised on your credit isn’t charged once a year. It’s charged monthly using a daily rate so that you pay compound interest (where you can wind up paying interest charges on unpaid interest already accrued).
Carrying a credit card balance inflates the cost of everything you buy with your cards, eating into your budget. The sooner you pay clear your debts, the more control you regain over your spending.
#3 Jewelry Doesn’t Generate Interest
Gold and silver are often used as investments. These precious metals are uniquely accessible commodities. They’re traded on stock markets just like oil and lumber, but they’re easier for individual investors to buy and store.
The two metals offer a number of attractive qualities as investments, such as:
However, unlike stocks or bonds, they don’t generate interest. If you’re dealing with debt, it often makes more sense to sell non-interest-generating assets to pay it off, as only interest-generating assets can keep up with or outpace high-interest debts.
#4 Your Silver Is Just Collecting Dust Anyway
Decluttering your home can turn into a great way to put money in your pocket if you have gold or silver lying around.
There can be good reasons to hold onto heirlooms or pieces that have sentimental value. Plans to pass a beloved piece of jewelry onto the next generation are reason enough to hold onto it. But that’s where it pays to identify real heirlooms from stuff you’re just holding onto.
#5 Living Debt-Free Is a Relief
Last but not least, you’ll feel a huge amount of relief when you finally pay off the last of your debt. You have more control of your budget and your life when you’re not juggling credit card payments and other bills. One of the smartest things you can do is rally every resource at your disposal to pay off debt as soon as possible.
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