Wednesday, November 25, 2009

Handling a big credit card bill

I've decided it is easier to make a game with points.

For example, if you need to find $10,000 (for a credit card bill or down payment) look for 10,000/100 points or 100 points. It easier to come with increments of $100 than to think of one big block of money.

1 point - cash in loose change around the house
1 point - return items to Home Depot or other retailers for things that were purchased and not needed (bathroom fan, tool)
1 point - cancel membership ie ymca or monthly services
1-5 points - sell some collectibles
1-10 points - don't reinvest your dividends for a period of time - especially for non retirement accounts. If your account is earning less tha 4% and your paying more than 10% on the credit card (example), use some of that money.
1 point - unclaimed property Look at the state of Illinois for unclaimed property (use previous names and at may be surprised.)
1-3 points (check your withholdings on your paycheck. Do you typically get a refund? Check with your CPA to see how this will affect your income taxes. Especially if your state is in trouble financially, you don't want to get an IOU from them.
1-30 points - income tax refund example

In any instance, look for increments of $100.

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