I talk about credit cards often.
I’ve also suggested that you start freelancing now.
How do credit cards tie in with freelancing? Allow me to try to organize my thoughts on credit cards and freelancing in this article.
Most people reading this want to earn extra money to battle their debt (student loans and credit card debt). The best way and arguably the fastest way to increase your income is to start making more money on the side. Since not everyone has the opportunity to find a part-time gig or to pick up more hours at their current gig, it makes sense to start freelancing. If you could increase your income, you could make a serious dent on your debt with your new found money.
Freelancing can help you kill off your credit card debt. It won’t be easy. It won’t be fun putting your new money towards old purchases. However, it’s essential if you want to become debt free. You can’t be chasing get rich quick schemes or thinking of the “perfect idea” forever.
Now it’s time to get a little controversial…
Credit cards can help you out with financing as a new freelancer. This is either the worst advice or the best advice. The simple reality is that credit cards don’t ask questions. When you’re starting off as a freelancer and ABSOLUTELY need to make some purchases for your business, your quickest access to money/credit will be your credit card. This could be a great risk or a foolish mistake. I’m just throwing it out there.
Freelancing can also get you into debt. As I stated above, freelancers and business owners might be tempted to put expenses on their credit card. This can work out if you’re business ends up booming. What if your business flops? I’ve seen people get into debt because of their business. Don’t think that it can’t happen.
One final point is student credit cards. College is often the easiest time to pick up random debt. It’s just too easy. You get this piece of plastic and it comes with access to money. All you have to do to have what you want is swipe a card. You want new shoes? You want a new laptop? No problem. It’s also easy to justify your debt as a student because you tell yourself that you’ll pay it off when you’re making lots of money. This is why I always urge everyone to take action right now. You can start freelancing if you’re a student, parent, or a video game addict. There’s no point to wait.
To wrap things up I wanted to say that both can help each other out. Freelancing can help you with your credit card issues. Credit cards can help you with your freelancing issues. If you want to make a wise move with your next piece of plastic, you should compare the best credit cards.
{ 3 comments… read them below or add one }
When I started my $3000 challenge in January, I made a promise to myself that I would apply all of that money towards paying off remaining balance of my old college credit card. That’s how much more I needed over what I had budgeted. But it is tough when I start to think of money coming in and the things I could do with it (such as getting new glasses instead of just taping up these frames!). So far, though, I’ve kept my promise to myself.
Really? How do you control yourself?
I linked my business Paypal account and my Google Checkout account to my separate bank account for debt-paying. The debit card linked to that account is locked up in my safe to keep me from making impulse buys with that money.