Yes You Can: Pay Down Credit Card Debt

Yes You Can: Pay Down Credit Card Debt

 

Are you struggling to come up with enough money to pay more than the minimum on your charge card debt? It can certainly appear as if there is never enough money to go around, but you might be amazed where you can discover a few extra dollars to apply towards that financial obligation and accelerate the reward.

 

Borrow From, or Cash Out a Cash Value Life Insurance Policy

 

Do you have a small cash value life insurance plan that's gathering dust, or even worse, costing you money each year? If so, you might wish to think about borrowing from the cash value, or potentially even canceling the policy altogether.

 

Cash value life insurance policy for younger people is usually a bad investment. In some cases, your parents might have secured a policy on you when you were young, or possibly you were offered a policy by an insurance firm. Regardless, you likely only have a very little death benefit, and a cash value that is making really little interest. If you're paying 10, 20, or 30 percent on your charge card financial obligation each year, you're probably doing even more harm than excellent by keeping the policy. Once you get caught up on your debts, you can look into a far more budget friendly term life policy.

 

Offer Non-retirement Investments

 

If you have some financial investments in regular taxable accounts, either in terms of savings bonds, CDs, and even stock funds or stock, it could make sense to sell a few of those investments to use towards your debt. While any gains on these financial investments are taxable, compare the overall amount of tax you'll pay compared to the quantity you'll save by eliminating the debt.

 

If you invested $1,000 in a mutual fund two years ago and it is now worth $1,500, which means you have a $500 gain. However since you held the investment for over a year, it undergoes the beneficial capital gains tax, which is presently 15 %. That suggests if you cashed out the $1,500, you’d only owe $75 in taxes. That would leave you with $1,425 to use to your credit card debt. If your charge card has a rate of interest over 15 %, you'll be conserving some money and getting that financial obligation settled even faster, which conserves even more interest down the roadway.

 

Offer Some Individual Items

 

Most individuals have a lot of stuff that just gathers dust in the garage or the basement that is no longer being made use of. While we constantly think we'll have a requirement for that old guitar or nostalgic computer game system, they are probably simply taking up area.

 

Consider having a garage sale, or even placing items for sale on eBay or on Craigslist to make some additional money. While offering just a couple of products for $20 will not work wonders on your financial obligation, offering a couple of dozen products for $20 will. Even creating a couple of additional hundred dollars will put a dent in your debt, and you'll also be cleaning up your residence or apartment at the exact same time.

 

Cancel Subscriptions

 

The monthly subscription is a significant drain on anyone's budget. Each subscription itself seems small and extremely affordable. $5 per month right here, $20 per month there, that's no big offer. While any one subscription may not look like much, when you have actually ten or more of these subscriptions each month, it can literally cost you a few hundred dollars a month. Canceling, and even simply downgrading a handful of your month-to-month subscriptions can maximize a good chunk of change each month.

 

Are you paying $60 each month for an 800 minute smart phone plan when you never review 500 minutes? Are you getting the regular version of the newspaper when you truly just have time to review it on the weekends? Do you get magazines that you do not get much value from, or could simply search online? These are all items you can downgrade or remove and release up money to use towards debt.

 

Do not Stop Here Get Creative

 

These are simply a few ideas; however it should give you something to think about where you can save cash in your life. You don't require having a huge pile of cash relaxing to put damage in your financial obligation. Just being able to find ten means to save $10 each month can cut your financial obligation payment strategy by months and even a couple of years, and conserve you hundreds or thousands in interest over the long run.

 

So, where can you discover money to pay off your credit card debt?

 

Hello my name is Andre Hardy.  I am part of a great “Home Business” team that I enjoy being a part of.  We all suffer from all kinds of debt.  There are many ways you can pay off your debt.  Many will find a part time job.  Why do that when you can work for yourself and make the money you need without having to answer to another boss?  Visit my website and find out how we combat debt.  www.1-2-3-bedebtfree.com