6 Places To Find Quick Money To Pay Off Consumer Debt (Frugal Pastor – Part 6)

Tuesday, February 26, 2008

Once you’ve become radically committed to paying off consumer debt in record time, where do you come up with extra money (once you’ve trimmed every place you can trim)?

Here are six places to find some extra cash in the next three months to radically pay down debt…

1. Ask for a raise
Unlike what I do for a living, most people I know can get more money just by asking. When was the last time you asked for a raise? Google “how to ask for a raise” and a zillion articles will come up to give you tips. Pray about it. Get all your ducks in a row. Set up an appointment with your supervisor and get your butt in there and tell them why you’re worth more to your company more than you’re getting paid. What’s the worst that can happen?

2. Trade in your air miles on your credit card for cash
Years ago when I was trying to pay off a credit card I discovered that Capital One will allow you to get a cash payout instead of getting a free airline ticket. Get the cash!

3. Have H&R Block check your last three year’s tax returns
A couple years ago someone mentioned this to me and I had H&R Block re-check my 2004 tax return. I had missed a deduction and once they refilled I got a check from the good ole US government for $3750! Checking your past returns is free. Re-filing is $50.

4. Go to the library, check out 5 personal finances books, and glean the 10 best ideas from all of them
The people I know who get out of debt quickly and begin slowly building personal wealth are always voracious readers. If your library doesn’t have a certain book in stock, have them find it through interlibrary loan. Here are a few books you need to read. Pour over these books and look for the best ideas that apply to your situation. Overtime you’ll find they all start saying the same thing, but eventually, at some point, something’s going to “click.”
The Total Money Makeover – Dave Ramsey
The Millionaire Next Door – Thomas Stanley
The Wealthy Barber – David Chilton
Your Money or Your Life – Joe Dominguez (if you only have time for one, read this!)
All Your Worth – Elizabeth Warren
The Average Family's Guide to Financial Freedom -- Toohey
America’s Cheapest Family -- Steve and Annette Economides
The Boglehead’s Guide to Investing -- Taylor Larimore
Smart Couple’s Finish Rich – David Bach

5. Make an Ebay/garage sale pile and sell it all by June 1st
My friend Frank Chiapperino is an Ebay master. Slow but sure he’ll sell an item for $5 here, $3 here, and $27 there. Overtime he’ll build up enough cash to buy something he really wants, all from junk he doesn’t use anymore. Be a wise steward of the stuff God has entrusted to you. If you don’t use it anymore, sell it. Hang up flyers at grocery stores. Ebay it. Have a garage sale.

6. Pull everything out of non-retirement savings accounts except $1,000 and pay off as much as you can
Listen, I’m not an investment guy, so I’m not about to start giving out investment tips. But I believe what Dave Ramsey writes. Why have non-retirement money sitting around in CD’s, checking and money market accounts earning 3-5% when you’re paying off a car loan or credit card at 7 to 9%? Even if you have a 0% loan, it’s still a depreciating asset. You’re paying money on something that is losing money while all the time you’re not paying yourself money into an account that’s making money.

Proverbs 22:7 says, “The rich rule over the poor, and the borrower is slave to the lender.”

If you have consumer debt, that verse is describing you. Get fanatical and make 2008 the year you get yourself out of that mess!

Live frugally. Give generously. Live well.

Brian