Tuesday, August 26, 2008

Should I Sell My Diamond Earrings to Pay Down Debt?

I’ve been reading Dave Ramsey’s Total Money Makeover to see whether I can get some ideas to help me pay off my debts faster. I’m still on Chapter 7 but I can already see that I won’t be having a Total Money Makeover anytime soon. (Maybe a Partial Money Makeover. More on this in my future posts.)

One of his recommendations for getting the debt snowball rolling is to sell items. I looked around my apartment and discovered the sad truth – I accumulated $13,000 in credit card debt and I have a lot of junk.

But I did find one item that may fetch some dough – my 1 ct, diamond stud earrings. Looking at eBay, I think it’ll fetch somewhere around $800-$1,000.

It’s not quality jewelry, but it’s the only decent piece of jewelry I have, so I can’t bring myself to sell it. Even if I used the net sale proceeds to pay down my debt, it won't make much of a dent in my $127,000 debt. I’m currently paying significantly more than the minimum amounts due on my debts and I already have a debt elimination plan that I am determined to complete in 6.5 years.

On the flip-side, if I sell my earrings, I will immediately pay down my debts by about $576-$720 (after taxes) and I'll save the monthly premium for the jewelry floater on my renter’s insurance.

I want to ask my readers, if you were me, would you sell the earrings to pay down debts?

7 comments:

FruGal said...

I wouldn't, especially if they were a gift (were they?) But I'm sentimental about that stuff...

Shtinkykat said...

Sadly, this wasn't a gift and it's one of the many reasons why I have a $13k credit card debt. But as you can see, I am reluctant to sell it. Thanks for letting me know you wouldn't either.

andy said...

Forget about selling them.....u can refer your friends to but them...

Here's the place u can find Diamond jewelry for your loved ones. diamondexotica brings to the best of diamond jewelry collections ever seen before!!

Mari said...

Diamond Earrings are more trendy nowadays
along with their popularity you have a lot of choice among which choice is not sometime easy.....

Melissa Yoder said...

Selling some of your old stuff is a good way to pay off your debt little by little. It may not mean much early on, but it’ll pile up to pay a good bulk of your debt. If you’re thinking of selling your jewelry, having it appraised first is a good option. That way, you know what it’s actually worth and can avoid getting ripped off.

Melissa Yoder @ SouthFloridaCoins

Melissa Yoder said...
This comment has been removed by the author.
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