Credit for Household Liquidation: Plan Costs and Secure Financing
8 Jul 2025
8
Minutes
Katrin Straub
CEO at nextsure
The cost of clearing out a household can quickly exceed 3,000 euros and present a financial challenge for many. An uncomplicated installment loan provides a remedy here. We show you how to secure financing in four steps and even take advantage of tax benefits.
The topic in brief and concise terms
The costs for clearing out a household range between €1,200 and €5,000, depending on the size and effort involved.
An installment loan without a specified purpose is the most flexible and plannable form of financing for this project.
You can deduct 20 percent of the labour costs as a household-related service from your taxes (up to 4,000 euros per year).
Cost Analysis: What a House Clearance Really Costs
The cost of a professional house clearance varies greatly and depends on several factors. For an 80-square-metre flat, you should expect costs between 1,500 and 2,000 euros. For a 120-square-metre house, expenses can quickly rise to 3,500 to 5,000 euros. Professional providers often calculate prices at 25 to 40 euros per square metre, depending on the scope of household contents.
The main cost drivers include the volume of material to be disposed of and the associated container and landfill fees. Many forget that property accessibility also plays a role; the absence of a lift increases the workload by up to 15 per cent. Allowances for well-preserved furniture or antiques can reduce the total cost by several hundred euros. Creating a detailed correct household budget helps determine the exact funding requirement. The exact calculation is the first step towards suitable financing.
Financing options: Finding the right loan for decluttering
To cover the costs of a household liquidation, an installment loan is the most common solution. A loan with unrestricted use offers maximum flexibility, allowing you to use the money for all incurred expenses. The average interest rate for such loans is currently about seven percent. With a loan amount of 4,000 euros and a term of 48 months, this results in a manageable monthly rate of approximately 95 euros.
In contrast to the expensive overdraft loan, whose interest rates often exceed twelve percent, the installment loan offers planning ability through fixed rates and a fixed term. Banks require securities for granting credit, which often includes a salary assignment. This secures the bank in case you fall behind with payments. Choosing the right loan model is crucial for a sustainable financial burden.
Application process: Achieving financing success in four steps
The path to securing a loan for a household clearance can be divided into four clear steps. This ensures you quickly and efficiently obtain the necessary financing:
Determine your needs: Obtain at least three quotes from clearance companies. Plan for a buffer of 10 to 15 per cent for unforeseen expenses.
Check creditworthiness: Request a free credit report from Schufa. A good score is essential for favourable interest rate conditions.
Compare offers: Use online comparison portals to review the annual percentage rate and terms from at least five banks.
Apply digitally: Submit the application online with the required documents such as pay slips and bank statements. Digital identification speeds up the process, ensuring you can secure a quick loan payout.
A structured approach helps you avoid pitfalls and obtain the best terms. Next, we'll show you how to save even more money.
Expert tips: Reduce costs and take advantage of tax benefits
You can significantly reduce the financial strain of clearing out a household through smart planning. Our expert tip: Sell well-preserved items in advance via online platforms or at a flea market. Often, you can achieve several hundred euros in proceeds, which can reduce your credit needs. Another important lever is tax deductibility.
You can claim the labour costs of the clearance company as a "household-related service" according to § 35a EStG. You can deduct twenty percent of the wage and travel costs, up to a maximum of 4,000 euros per year, directly from your tax liability. For this, you need an official invoice and must pay the amount by bank transfer. The tax office does not recognise cash payments. Those who plan ahead can also consider whether making early preparations is sensible to minimise future costs. These savings potentials should not be overlooked in the overall assessment.
Special cases: What applies to inheritance or moving into a care home
The financing of a household clearance is subject to special rules when it occurs as part of an inheritance. The costs for decluttering are considered as estate liabilities and can be deducted directly from the inheritance. This can reduce any potential inheritance tax. If there are multiple heirs, the costs are divided according to the share of the inheritance, which can reduce the burden for the individual by up to 50 percent or more.
A move to a nursing home is another common occasion. Here too, the costs can often be claimed as an extraordinary burden for tax purposes, provided that a reasonable personal burden is exceeded. In such complex cases, financing can also be combined with other financial arrangements, such as the payment to an heir. Sometimes the clearance is also part of a new beginning, similar to a financial restart after a divorce. These special situations require particularly careful planning.
Conclusion: Mastering the Household Liquidation with the Right Financing
Clearing out a household can be a significant financial and organisational burden. Costs can quickly reach €5,000, but they are manageable with a targeted loan. An installment loan with no specified purpose offers the necessary flexibility and financial planning. By comparing offers, taking advantage of tax benefits, and careful cost calculation, the financial burden can be noticeably reduced. This transforms a big challenge into a manageable project.
Request an individual risk analysis now: Have your insurance situation checked for free and receive specific suggestions for optimisation.
More useful links
Wikipedia provides a comprehensive overview of household dissolutions, including definitions and general information.
The Federal Statistical Office provides official statistics on deaths and life expectancy in Germany.
The Federal Ministry of Finance offers detailed information on inheritance and gift tax.
The Consumer Centre of Brandenburg provides information on correctly terminating contracts of deceased persons in the context of a household dissolution.
The Federal Employment Agency offers information on the placement budget for unemployed people and other financial assistance.
Haufe.de explains the deductibility of estate settlement costs for inheritance tax.
IWW provides information on the deductibility of costs for household dissolutions and apartment clearances for inheritance tax.
FAQ
What documents do I need for a loan for a house clearance?
You will typically need a valid ID card, the last three payslips, current bank statements, and the quote from the clearance company. For self-employed individuals, business evaluations (BWA) are often required.
Can I get a loan for a home clearance despite having a negative Schufa?
A loan with a negative Schufa entry is challenging, but not impossible. Some specialised brokers offer solutions, though often at significantly higher interest rates. An alternative could be a loan with a second applicant who has strong creditworthiness.
Is it worth getting payment protection insurance for a small loan?
For small loans under 10,000 euros, a residual debt insurance is usually disproportionately expensive and therefore not advisable. The insurance costs can significantly increase the overall cost of the loan.
What is the difference between the nominal interest rate and the effective interest rate?
The nominal interest rate refers to the pure interest costs for the loan. The effective annual interest rate also includes all additional costs and fees, such as processing fees. To compare loan offers, you should always use the effective annual interest rate.
Can I repay the loan for the household clearance early?
Yes, early repayment (special repayment) is possible at any time with installment loans. Banks may charge an early repayment fee of up to one percent of the remaining debt. Many modern loan agreements allow for free special repayments.
What happens if the value of the items exceeds the cost of liquidation?
If the clearing company earns more from the sale of valuables than the cost of the liquidation, you will be paid the difference. This should be clearly documented contractually as a credit with the option for payout.
