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?



Congratulation on your Google check! It’ll definitely help pay down the credit card balance. Wow, that interest is high, 23%?
retirebyforty@retireby40.org recently posted..September 2011 Cash Flow
Yes, it is high. It ticks me off, really.
Dittos. Paid off my business Capitol one card this year and now working on my list credit card. My goal was 1k a month and paid my next june but now I’m thinking of taking some of the emergency fund and some of the business cushion and just getting rid of it by end of year or sooner. The just the 1st and 2nd on the house left.
Wish you luck, I’m slitting my online income between taxes, debt, investmentd
Jeff @mymultiplestreams recently posted..Own a Business? Be Sure You are Being Paid!
Sounds like you have a good plan. I have more debt to be taken care of before I get to the mortgages, but I got to start somewhere.
Keep workin’ on it. The beauty of this situation is your online income will continue to increase (if you keep at this pace) while your debt load decreases. That will surely be encouraging to watch; just stay disciplined and it’ll be over before ya know it!
Darwin’s Money recently posted..My Laid Off Co-Worker is Better Off Unemployed Than Working – 99 Weeks Off, Same Income!
Yes, it will be great to watch the velocity increase. It will seem slow going at first but I know it will happen.
Keep at it, CFM. I’ve about had enough of modern big banks, too.
101 Centavos recently posted..Can Taxes Kill?
Thanks. I am hoping to stick it to them.
That’s a great goal; not to pay credit cards or banks any interest! I’m trying to pay off my car loan right now and though the interest isn’t very high, it’s pretty much my last debt not counting my student loans. I want that baby gone! I’m tired to paying interest on the car that is now 6 years old! Congratulations on that Google check. Eventually that income will increase and you’ll be able to pay off those cards sooner than later!
Little House recently posted..Discover the Power of Asking
It will increase I am sure. It is a slow process for me at least so I would not necessarily even expect to have monthly checks until well into 2012 if at all. It may even take longer than that. But I am getting more and more search traffic which I understand is beneficial. I can’t wait for that card to be gone so I can work on another one.
Sounds like a great plan to me. I am glad you are focusing on your debt and not instant gratification. You will be so glad you did in the end.
Miss T @ Prairie Eco-Thrifter recently posted..Tips for Wasting Less Food
Opening that last statement with a zero balance is my definition of instant gratification.
Ps: I tried emailing you using your advertising page but the email bounced back. I have been commenting on here for months but none of my comments until today have been showing up. Can you check your spam folder and fish my comments out and make sure I am good to go for future. Thanks a bunch.
Miss T @ Prairie Eco-Thrifter recently posted..Tips for Wasting Less Food
I am not sure what to make of it all. I will email you separately.
Great goal – we’ve been 100% debt-free for many years now, including home, cars and rental property. It took a while to get there but was so worth it! We do use our credit card as much as possible to earn points but pay the charges in full each month so the high interest rate is irrelevant.
Crystal recently posted..Debit or Credit – Which Card Should You Use?
Congrats on being debt free especially the rental. I am sure that the feeling is wonderful.
Congrats on the check from google. Your goal to pay down your debt sounds like a great goal.
20′s Finances recently posted..Hiring a Property Manager: What it offers you
Thanks. I know it will be tough, but worth it someday.
I’ve been hesitant to put Adsense on my blog as I didn’t know whether it would be worth it. Your post is making me rethink that decision…
Travis @debtchronicles recently posted..Money Music Shuffle – The Re-commitment Edition
This month hasn’t been earning too much, but it does add up a little here and a little there.
Congrats on your adsense check!
I am with you on the debt. Keep workin’ on it and get rid of it asap. The income will hopefully continue to increase rapidly and will work along with you to make you debt free.
Suba recently posted..So you think you can beat the system.
Thanks. I just think that getting a little momentum will be the most important thing. Once that starts, I am sure that it will get easier and will seem like it goes pretty quickly.
Congrats on getting a check from Google! I never got mine, as for some reason they banned me (oh well).
Tony @ Investorz’ Blog recently posted..Investor Psychology/Sentiment in a Bear Market
Keep at it, and best of luck getting that debt erased. Debt kind of freezes us, keeps us from doing what we would really like to do with our money. I can’t stand debt, and the feeling of owing.
Good for you that you’re applying the online earnings straight to debt. Those checks sure are nice!
Squirrelers recently posted..Free Trips to Japan and $1.00 Houses: Too Good to be True?
Thanks. The balance is decreasing and I am going to have it paid off by the end of the year. The nice thing is that the payoff falls straight to the net worth line.
Jebus at 23% you should pay it off asap! and then the added benefit to paying it off is the increased in liquidity per month. That’s my favorite part
Evan recently posted..Planning To Travel In Advance Makes a Trip Much More Exciting
Can’t beat a 23% guaranteed return, huh? That is why I am going to be getting it paid.
Using internet earnings to pay off debt is a great way to get ahead financially. I followed this plan for several years and just became debt free this past spring –a great feeling!
Can’t wait to hear that you’re debt free — keep at it!
Maria (Work at Home Mom) recently posted..September Passive Income Online
Congratulations on becoming debt free. I can only imagine that it is a huge weight off the shoulders. It will take some time, but I will get there and be sure to let everyone know about it.
CFM,
Good stuff!
I don’t have any revolving debt or a mortgage. The only debt I carry is student loan debt which is at a low interest rate (under 3%) and is tax-deductible, so I’m in no rush to pay it off. I still go back and forth on buying a place one day, but if I do I may just save up and pay cash. We’ll see.
Best wishes on your journey to pay off that debt! It’s a wonderful feeling!
Dividend Mantra recently posted..Consumer Stocks: Safety In A Volatile Market
That is great. I love reading your blog. Thanks for stopping by and commenting.