How To Pay Off Debt With No Money
One of the biggest challenges that a lot of people encounter while trying to repay consumer debt is locating money to pay off debt
. To pay off your credit card debt, you need to pay more than the minimum payment, however this is often hard to do if you are having difficulty simply making ends meet every month.
So just how on earth do you get money to put towards your credit card debts each month? Allow me to share several thoughts:
Income tax refund: Do you usually get a substantial tax refund each year? If so, then you can use part or all of your tax refund to pay down your debts. Furthermore, you might want to correct your income tax withholding so a smaller amount of taxes are coming out from each check; you will get a smaller tax refund, however you'll have additional money to apply towards your credit card debt payments each month. The thing you don't want to do is give The government free use of your money when you need money to pay off debt!
Personal savings: No one likes to spend their savings account to pay down debt, but if you have credit cards that are costing you 15% and up in interest charges each month and your savings account is only earning 4% (or less), it is just smart to use some of your personal savings so that you can eliminate that unpleasant credit card debt.
Part-time or temporary job: If you are truly in a debt bind, you should think about applying for a part time, contractual or temporary job. It does not have to be forever, just long enough to repay or at least make a difference in your debt situation.
Sell items: One more option would be to sell items to help you raise money. Have a yard sale or sell items you don't need any longer on Craigslist or eBay. Sell books that you no longer read on Amazon or Half.com. You'll be shocked by the amount some items will sell for on an online auction!
Reduce spending: Although listed last, this is probably the first step you should really take to uncover extra funds to repay debts. Make sure you review your budget to find out if there are any areas that you can reduce to generate additional money to be used towards your credit card debt. Some frequent areas that can be reduced, at least temporarily, to help pay off debt include food (both groceries and eating at restaurants), entertainment (gym memberships, newspaper subscriptions, cable tv, internet, trips to the book store) and personal care (haircuts, clothes, housekeeping, etc.).
by: Krissi Ann
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