| Money To Payoff Debt |
| By Credit Federal |
Published
06/14/2008
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Debt Help
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Find Money To Pay Bills and Reduce Debt
You've likely already heard or read how you should have saved money for an emergency such as the current economy crisis, and you've probably been told to create a budget and eliminate wasteful spending such as cable TV, dining out, etc.
And, surely you already know that if you're a homeowner you could get a debt consolidation loan. Also, there's the standard credit counseling to get bills under control, and there's debt settlement to chargeoff balances at a lower rate.
In this article we won't repeat those strategies. Instead, we're going to show you creative ways to come up with money to pay bills.
Contact your credit card company and ask for a lower interest rate. Unless you have bad credit or haven't been a customer for long or have missed payments, your issuer will likely reduce your APR. A few points can add up. If; for example, you have a $5,000 balance and you pay only $200 per month and your issuer charges 21%, your total at payoff would be $6,632.20, whereas if your rate was lowered to 18%, your total would be $6,313.96. That's $318.24 in savings. The money you save in interest can be used to make higher monthly payments to payoff the balance faster, saving yet more money.
If you have a cashback credit card, don't forget about your accrued cash award which you can either get in full from your issuer or use to pay towards your credit card balance.
Of course another credit card tactic is to transfer balances to a new, 0 intro credit card. But don't do it just so you can go six months without making a payment. Instead, use those six months to get the balance down before the interest starts.
If you have a whole life insurance policy, contact your insurance agent and ask how much cash value it has. You can borrow against that cash value, typically at a very low interest rate; lower than a personal loan, and you can repay over a long term. Meanwhile, use the loan money to payoff or to pay down higher interest bills.
If you have an auto that is paid off; or nearly paid off, you can use its equity and get a refinance loan. Beware; however, that the refinance loan will have an interest rate higher than the purchase rate of a new car. Yet; if you have other loans or credit cards at higher interest rates, you'll still save money by using the refinance loan to payoff other higher interest debt.
Get a loan from your local pawn shop. Take merchandise you no longer need; or use, to your local pawn shop and get a loan using the merchandise as collateral. Beware; however, that if you miss a payment you'll lose your merchandise. Also be aware that you won't get a loan that equals the value of your merchandise, either. Nonetheless, this is a viable option for people who are desperate for cash.
Have a yard sale with your family and neighbors. The bigger the yard sale the better, as it helps to draw large crowds. Now is an ideal time for yard sales, because you are not the only one in financial distress. As the economy worsens, many are searching for ways to beat retail prices. If you dig through your home and garage you'll certainly find items you no longer need or clothes you've outgrown. While you make money, you're also helping out others.
Become the office chef. If you work in an office environment and have co-workers who frequently dine out for lunch, offer a home-cooked lunch service. Since you're brown-bagging your lunch anyway (if not, you should be to save money), why not prepare food for co-workers and charge them for a profit? They'll get a home-cooked meal which is healthier than dining out, and you could charge enough to make a profit while still making it more affordable for them than dining out.
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