How to Get Rid of Boat Loan Debt
Boating and sailing is a passion for many people. Just being out in the open sea, surrounded by nothing but the blue ocean and the blue sky is an amazing experience. Maybe that is why many people take up sailing as a hobby. It is not uncommon to see people owning boats and yachts. For some it is a symbol of prestige but for most others, it is just the sheer passion for sailing which makes them buy a boat. Lots of people opt for loans to go in for a boat. Just like how financial loans are available for buying a car or a house, most financial institutions and banks provide loans for buying boats.
Sometimes people face problems in settling debts with regard to their boats. It is a cause of serious concern and one should be ready to face the consequences of not being able to repay the debt. People should always be aware of their limitations before undertaking such ventures. However, sometimes due to unavoidable circumstances, one might not be able to repay the debt as promised. There are some ways to get rid of this problem. However, one should be ready to face the consequences of breaking a bond.
Here are some suggestions on how to get rid of your boat loan debt:
- Sell the boat
- Try to make the payments
- Rent it out
Sell the boat. This is probably the best solution one might have when it comes to getting rid of a debt. It is also the most painful of them all. When you can no longer repay the loan, it is only wise to sell the boat. Make sure the boat is in proper condition when you decide to put it up for sale. It does not hurt for the boat to look its best. Do not overprice
it as this might reduce the chances of it getting sold. Your first aim should be to repay the debt so keep that in mind while setting a price for your boat. You must do all you can to make sure people know the boat is up for sale. Put an ad in the newspaper, keep it at the lake and make sure the boating and recreational industry knows that the boat is up for sale.
Try to make the payments. You can always try to explain your situation to the bank authorities. Though it might not always be successful, it could work. Try to lessen the amount you pay. This might mean paying a larger sum ultimately but it will give you more time to find someone interested in buying the boat.
Rent it out. There may be many people who would enjoy sailing and boating as much as you do. It might even be possible to rent the boat for a day or two. This could bring in an income which will help you repay the debt. Put up advertisements wherever possible. Spread the word through your friends. Chances are that people would turn up to hire it.
Repossession. Keep this as the last resort. Not many people opt for repossession. Only when the situation is completely out of control, opt for this option. It is like a black mark when you let the bank sell the boat. Whoever comes forward to buy it will know that the bank wants to get rid of it. And if the bank manages to sell it for a price less than what you owe them, it means that you will have to pay the remaining amount. You might pay it gradually but it will become very difficult for you to get credit in the future.
Posted by Mike on January 27, 2009 in MoneySource: www.howtogetridofit.com