Using My Google Check to Pay Off Debt

My plan for blogging and other online income has been to use those extra funds for paying off high interest rate credit card debt.  That way I can get additional benefit from those earnings by getting a guaranteed return on that investment.  It is not only guaranteed, but also tax free.  The savings from decreased interest expense is essentially passive income.  It really doesn’t get any easier than that.

Last week I got a check from Google for $140.  It represented several months of AdSense earnings.  Someday, I hope that it can represent a monthly take but I suspect that day is at least one year, but more likely, two years into the future.  I will probably need to get four or five times my current level of internet traffic before I get to that day.  In the meantime, I will take what I get and use it for paying off debt.

So, I deposited that money into the business checking account.  I run all of my business activities through a single LLC.  This LLC holds my investment real estate and collects all the blogging income as well.  I also have a couple business credit accounts including a business credit card.  It is my Capital One Business Credit Card that I would like to pay off using this AdSense income.  I will typically use the card for my rental property.  The balance on the card currently was used to place hard wood flooring in a rental this past summer to replace carpeting.

Trying to Save on Interest Expense

The only problem with this credit card is that the interest rate is quite high.  I am embarrassed to admit that it is actually about 23% and that I have been carrying a balance on it for some time.  In 2010, I paid a total of $430 in interest.  I had it virtually paid off until this spring when I did the property renovation and have been working to pay it off again.

So far this year, I have paid a total of $419 in interest and plan on getting the balance down to zero by the end of this year.  It actually looks like I may end up paying a little bit more this year than last.  My goal for 2012 would be to pay no interest at all and to decrease my interest costs across the board for both business and personal loans.

Sick Of It!

I am finally sick and tired of working for banks that turn around, take my tax money, and then screw me because they feel it is their right to make a profit.  Well, I am going to start taking my money and go home.  I am going to bust my butt and pay off as much as I possibly can over the next 15 months.  Then I will be doing it again and again until I get every last bit of debt paid off.  I can tell you that it will be a long haul, but it will be worth it.  I long for the day when everything I earn belongs only to me and Uncle Sam.

So, my first mini-goal is to get that Capital One Business Card paid off and not pay any interest on it at all next year.  That will save me $35 per month in interest plus allow me to cross that routine payment out of my budget freeing me to use those funds for additional debt payment.  I already mailed in that $140 AdSense check and should be able to get it paid off in the next 2 months with some additional money that I add to the usual payment.  I am excited and hopeful that 2012 will be a turn around year.

Feel free to add your comments.  Are you sick of debt like I am?  Or sick of banks?

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