If you’re reading this, you’re probably well aware of the credit card trap. Now, before you think we’re disparaging the credit card industry, please know we think credit cards are useful and can even work to your advantage — as long as you pay the balance in full each month before the interest party begins.
Once that happens, you’ll be chasing that dragon until you vanquish it by paying the debt off in full. This brings us to our subject today — finding money to pay off debt. While there are a number of different ways to go about this, here are a few of the better ones.
Before You Get Started
Regardless of the brilliance of the advice you’ll find here, if you keep charging, you’ll keep having this problem. The cost of debt increases with your balance and can be very difficult to pay off if your minimums are too high. So, before you set about finding money to pay off debt, decide which one of your credit cards you will keep for emergency situations and cut up the rest of them. Sounds drastic? Yes, we know it does.
However, the best place to find money to pay off your debts is at home. As in stay at home and quit running up debt. Once those cards are cut up, don’t use the account numbers online to make purchases either (yes, we thought of that one too).
Keep the accounts open though. Even though you won’t be using them anymore, they do contribute to the length of your credit history, which is one of the factors determining your credit score. A long history of good payments is a positive thing.
If you’ve been missing payments, you’ll benefit from a consultation with a company like Freedom Debt Relief. These types of firms can help you devise a repayment strategy to make your found money go farther.
Raid Your Closets And Your Garage
Most people have items of value languishing in their closets, garages and storage areas. Yes, you read that last one correctly, there are people out there paying (often with credit cards) to hold on to things they could be selling to eradicate their debts.
In the past, your primary option was to do garage sales. However, the internet has taken the garage sale global and increased your potential for profit. Sites like CraigsList provide energetic marketplaces within which you can turn items into cash.
By the way, you can also make pretty good money doing this for other people. Start an online business by selling other people’s stuff too. Sell for others using these services and keep a percentage of the sale price to pay down your debt.
Return Unused Items To Retailers
If you’re in the habit of holding on to receipts and you have items around the house you haven’t opened, return them for a refund (or more likely a credit to your card account.
Check The Change Jar
Granted, it’s likely to be less full these days with the cashless movement in its ascendancy. Still, there’s bound to be pennies, nickels, dimes and quarters lying around the house. Gather them up, go to the bank, deposit them into your checking account and turn them into card payments.
This one might sound a bit counter productive, but it pencils out when you do the math. Unless some miracle happens, most investments do not return 14 to 25 percent annually — but credit card issuers routinely charge consumers that much in annual interest payments.
Yes, you might be taxed on the money when you cash out, but putting it toward eradicating your credit card debt will still generate more profit for you in the long run. Plus, you can always reinvest after the debt is cleared up. These are just a few ways you can find money to pay off debt.