Give Yourself a Raise This Labor Day By Reducing Your Debts

Labor Day weekend is fast approaching but, for many of us, labor has already been on the brain for months. Nearly 10% of Americans are unemployed. Many more are worried we could become unemployed. Some of us are working more than one job just to make ends meet. And I don't think I'm going out on a limb when I say that nearly all of us are feeling underappreciated in terms of payment.

Despite the fact that labor productivity - the amount of work output employees provide per hour - rose at the fastest pace in six years, employers just aren't ready to start giving raises. Instead, they're pumping that extra money back into their suffering businesses. But while you can't really blame a business owner for trying to survive right now, the lack of income takes a toll on the economy. Without higher pay in return for that higher productivity, consumer spending won't be able to increase - making recovery slower and more difficult. It's an unfortunate cycle.

But just because your boss isn't giving you a raise any time soon doesn't mean you have to go without. Why not reward yourself this Labor Day? Give yourself a raise.

If you're like most Americans, you probably have credit card debt, car loans, IRS obligations or other forms of debt - which means that a certain portion of each paycheck is going to someone other than your family. Lowering that debt means more money for you each month - i.e., a raise. Now, you might be thinking that you can't afford to start paying off debt at a time like this. But here's the secret.

When you make minimum payments on a credit card balance, for instance, you're barely covering interest - and therefore not doing much to pay down that principal. At that rate, you're going to be making those monthly payments for possibly the rest of your life. Who wants to do that? When you reduce your principal, you reduce the amount you'll be paying credit card companies over the original value of your purchase. Paying off your debt will actually save you money.

Now, if you're already spending beyond your means (which is how most of us wind up in debt in the first place) finding the money to pay more than your minimum each month might not be a walk in the park. But it can be done. Try analyzing your current spending needs and make a budget. Find a way to set aside a little more every month for whittling away at that debt. And, most importantly, if you find it's too much for you to handle alone, don't give up.

Bankruptcy is a guaranteed way to eliminate many of the most common forms of debt. In the process, it can also protect your assets - including your home - from repossession. Want to learn more? At DebtStoppers, we can give you all the answers and information you need for free when you sign up for a free personal debt analysis with a Chicago bankruptcy attorney. What better way to celebrate Labor Day than finding a way to keep more of your hard-earned cash.

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