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Emily's list: Unconventional ways to pay debt
You probably know the conventional ways to break free from debt -- cutting cable, canceling the gym membership, cooking at home and focusing on spending less than you earn so you can use what's left to make payments. What if you didn't have to do any of that? Some people have found alternative ways to retire their debt. While I have some ethical issues with these methods, in the end, they worked.
Karyn Bosnak was a shopaholic in over her head with $20,000 in credit card debt. While she did cut back and sell items on eBay, she lost her job and her ability to pay her credit card bills. In 2002, she was gutsy enough to start a website, SaveKaryn.com, and ask the public to help her pay down her debt. Somehow, 20 weeks later, she garnered enough sympathy to get her bills paid by strangers. She has also written about her experience in a book. This initially gave me the creeps -- how reprehensible to ask money from strangers to pay off irresponsible debt and then make money writing a book about it. I love sites such as Kickstarter that help people raise money for a project, especially because the givers get something in return, like the finished album they helped a band fund. But I felt better about Karyn's story once I read that she donated the same amount that she initially received to charity.
I recently watched a documentary on Netflix called "After Porn Ends" out of curiosity. Asia Carerra was a porn superstar who eventually left the industry to start a family. In the documentary, she discusses her rise to fame and talks about how popular and wealthy she became from movies, appearances, products and more. When she was about to have her second baby, her husband tragically died in a car accident. She put this message up on her website: "If anyone wants to make a charitable donation to a pregnant widow who doesn't know how she's going to raise these two babies on her own, there's a spot on my sales page where you can donate up to $100." In the movie, she discusses this act of desperation and says her fans gave her lots of money, but she never addresses how she went from making hundreds of thousands of dollars for years to all of a sudden having no savings.
One of my colleagues pointed me to a funny site, ExboyfriendJewelry.com, as another unique way to make money and pay off debt. Get jilted at the altar? Break up with a loser? No need to return the goods he adorned you with -- simply resell them and fill your pockets with cash. If it's a broken engagement, I personally think you should always return the ring, even if he says not to. But if you have debt to pay, it's an option. Where do you draw the line on how to retire debt?
If you are interested in the more-typical ways to pay off your debt or create a budget, turn to these 10 trusty blog posts from the past week.
1. My Alternative Life reminds us how important it is to know the difference between wants and needs -- a concept that greatly impacts the state of your finances.
2. My Personal Finance Journey explains how to create a zero-based budget, a common way to manage your monthly spending.
3. On the same note. Minting Nickles offers additional tips on how to create a budget that is customized to your life.
4. I know from personal experience that taking on freelance work can help you boost savings or quicken your debt payoff, but it's not easy. Young Adult Money shares five things he has learned so far from earning extra money through freelancing.
5. The Debt Myth suggests that the simple act of brainstorming may be the most effective way to get out of debt.
6. Narrow Bridge Finance shows how far online banking technology has come and suggests free financial tools to help you make the most of it.
7. Being an entrepreneur can be an ideal way to shape your financial future, but there are plenty of ways it can go wrong. Finance Fox discusses why doing business with friends can turn into a disaster for both of you.
8. Ready For Zero argues in favor of using rewards credit cards, but also shares a few guidelines you need to meet if you want to use them wisely.
9. Tackling Our Debt provides a primer on how to get your finances on track and includes tips for using credit cards to your advantage.
10. Prairie Eco-Thrifter bemoans how people spend too much on appearances and praises the benefits of living within your means.
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