Celebrate Labor Day By Giving Yourself a Raise

Labor Day was developed to honor the American worker - but I think I can speak for most of us when I say the American worker is feeling pretty underappreciated right now.

Unemployment is at the highest rate in decades. Layoffs are a constant worry. And for those of us lucky enough to be somewhat securely employed, we haven't seen a raise in many months - maybe even years. It doesn't look like things are changing anytime soon. While labor productivity recently grew by the highest rate in six years, employers simply can't afford to reward hardworking employees. Rather, they're putting that savings back into their struggling businesses.

In the meantime, the cost of living is rising, credit card rates as going up and our debt is growing. For many of us, it isn't just about having more money. It's about affording the mortgage. It's about escaping from creditor harassment. It's about our livelihood. If you're in danger of losing your house or personal property because you don't earn enough to make ends meet, you don't have time to wait around for your boss to feel generous. Why not authorize your own raise?

It sounds crazy, but hear me out. The vast majority of Americans carry debt. And they pay interest on that debt. Let's look at a simplified example. Say you put a $1,000 TV on an 18% APR credit card. Now let's say you make minimum monthly payments of $20. At that rate it will take eight years and almost $900 in interest to pay your balance. That means you're paying almost twice as much for your TV than if you would have paid cash - or immediately paid off what you charged. By eliminating that debt quickly, you'll save yourself that extra $900. Now, consider the fact that many folks have at least ten times that much debt - and corresponding interest. Reducing what you owe has the potential to save thousands of dollars. That's one heck of a raise.

To benefit, you'll need to start paying down more than the minimum. If you can handle it, budget ways to cut back on expenditures so you can allocate more to credit or loan payments.

But don't give up if you find your debt burden too overwhelming or you don't have any cash to spare. By filing for bankruptcy, you can eliminate many of your debts entirely with a personalized repayment plan or a discharge. Not only that, but you'll gain immediate legal protection from the moment you file - that's why Chapter 13 bankruptcy is the only guaranteed way to stop foreclosure. To find out if there's a bankruptcy plan for your needs, just fill out our online one-on-one debt analysis form to schedule a free chat with an Atlanta bankruptcy attorney.

Labor Day is supposed to be a day of relaxation. But when you free yourself from debts, every day will feel more like a holiday.

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