Using Google Checks to Pay Off Credit Card Debt

I am about to get my fourth AdSense check from Google in the mail and am really excited about it.  I have been working harder on publishing more Hubs and my efforts are starting to payoff both in terms of traffic as well as in earnings.  Last month was my best ever with AdSense.  I anticpate that I will get one more check before the end of the year considering the fact that I am more than halfway to the next payout with September's results alone.  I am not saying this to brag but to encourage everyone that hard work is the key to making more online income.  You can check out my earnings results on my blog as well as follow my other online ventures.

Before I got my first Google check, I decided that I would use the money to help pay off a business credit card with a fairly high interest rate but a balance that could be paid off.  I run all of my online activities like a business and even have the AdSense checks payable to my LLC.  I rearranged some of my other payments to only make the minimum amount and used that extra money to add to the payment of the business credit card.  Then whenever I would get a payment from Google, I would deposit that money in the business checking account and add that amount to the next credit card payment.  I have even done that once with money that I have gotten through Paypal from eHow and Life123 before they shut down their writers program.

When I started working on this debt reduction plan about a year ago, I had a balance of over $3000 on that card.  Since then I have been able to make about $900 in extra payments from my online income.  Added to the other adjustments that I made, I have been able to reduce the balance to $977 as of the latest statement.  I will be able to pay off that card before the end of the year.  I next plan on attacking a business line of credit that also has an interest rate that I would be unlikely to duplicate in the stock market. 

The impact that reducing debt can have on cash flow is enormous.  Consider the situation that I just described.  I had a balance of $3000 which is now less than $1000.  That $2000 that I have paid off is an investment that is earning 23% interest each and every year and is totally tax free.  That equals $460 each year or $38.33 each month.  There have been many months that I earned less than that with AdSense and yet I am able to increase my business cash flow by that amount just by paying off debt. 

Granted it will be a long road to get out of debt, but ultimately it will be worth it.  After that card is paid off, I will have an extra $57.50 per month in free cash.  Of course as I mentioned, I don't plan on stopping there.  I plan on paying off a credit line which will help cash flow further.  I hope you can see the implications. 

I know many Hubbers use their online income for additional needed income to pay bills or use as their sole support either by choice or not.  I commend those individuals.  I have been fortunate that I have full time work for support and have the luxury of using the extra income to pay off debt and get to the point where I might have a wider range of choices and opportunities.  What do you do with your online income?  Feel free to comment below.