While it has only been around for a few years, there are very few people today who haven’t heard of virtual currency, usually in the form of BitCoins.

A Brief History of Virtual Currency

The first mention of virtual currency was defined by Wei Dai in 1998 on the cypherpunks mailing list. This mailing list is an un-moderated list dedicated to discussing cryptography and its effect on society. In his original post, Wei Dai explained his idea of a virtual currency that would free people from government imposed restrictions and manipulations. He described a system where people could buy and sell products and services anonymously, using advanced cryptography which would control the virtual currency’s creation and transactions.

The first specifications and proof of concept of a virtual currency (called Bitcoin) were published in 2009 by Satoshi Nakamoto. However, nobody really knows who this “Satoshi Nakamoto” is. While there has been much speculation and investigations, there is still many questions on the originator of Bitcoin, but we do know that since its original conception as Bitcoin, virtual currency has grown by leaps and bounds! As a matter of fact, at the time of writing this article, there are almost 800 different Crypto-Currencies available for trading and that number is expected to keep rising.

Why does Virtual Currency remain so popular?

There are several factors that make Virtual Currency so popular. One of the main attraction to virtual currency is the anonymity factor. The way virtual currency (aka crypto-currency) is set up makes it almost impossible to match up a person with a transaction. This is a good thing for those who want to set up a nest egg, but don’t want their government to know about it.

Although Cryptocurrency can often be spent like any other currency, the government can only tax it when and if you are ready to cash out or make a purchase. This makes virtual currency something of a tax haven! Of course, many governments are now trying to figure out ways to tax virtual currency: To this day, however, it remains very difficult (if not impossible) to impose any taxes on a currency that does not have legal tender status in any jurisdiction.

Another thing that makes virtual currency such an attractive option is that, since it’s conception, many places across the world have actually started accepting Bitcoins (and other virtual currency) as payments. According to an article in Technology Review, there are tens of thousands of Bitcoin transactions every day, with hundreds of businesses (mostly online) accepting bitcoins (and other virtual currencies) as payment.

As Virtual Currency becomes more entrenched in the world, we will find more and more businesses, vending machines, grocery stores, etc. accepting this type of currency.

What does the Future hold for Virtual Currency?

While there may be hundreds of virtual currencies out there right now, only a few are really viable currencies. We’ve already discussed the most popular virtual currency, BitCoin, but few others seem to be making waves.

For instance, shortly after bitcoin’s emergence, we saw another virtual currency called Litecoin. Unlike the creator of the Bitcoin, however, the creator of Litecoin (the second most successful virtual currency) is well known. Charles Lee successfully launched Litecoin in 2011, based in part on the Bitcoin code, but using Scrypt as a proof of work function, instead of the SHA-256 function that Bitcoin uses. Basically, what this means is that it takes less computing power to generate the Litecoin, so more people can “mine” it.

Other virtual currencies are appearing on the horizon every day that may give LiteCoin and even BitCoin a run for their money. The creators of virtual currencies are always coming up with new and inventive ways of mining and distributing these “coins,” such as OneCoin and YoCoin, which use different methodologies for distribution.

As virtual currencies catch on, we will probably see many innovations and new ideas that will propel the virtual currency world further and further. Who knows, we may see a global currency, some day, based on the concepts of virtual currency, that will make real currencies a thing of the past. While many virtual currencies are a flash in the pan (based on poor coding or poor planning), you would do well to keep your eye out on emerging virtual currencies, as you never know what might be the next BIG thing. If you get in on the right one early, you can easily see a 500% or higher return on your investment. Take BitCoin as an example. When it first came out, BitCoin was trading at $1 per coin. Today, a bitcoin is worth over $500 (though this can fluctuate daily) and has fluctuated as high $1,242! So, you can see, although it may be considered ‘high-risk’ it’s definitely something to keep in mind as you consider making an investment in the future.

Featured photo credit: thewealthwatchman.com via thewealthwatchman.com

Ever wondered whether your credit card debt is the reason you’re in a bad financial situation? You can’t enjoy any fun activities because a good chunk of your money goes toward debt payment. Heck, you’re even behind on some of your monthly bills.

The effects of clumsy debt management are too many to list here. This guide is going to help you discover how to pay off credit card debt fast and start chasing your financial goals.

Debt problems are the last thing anyone wants to encounter. But things can get out of hand when all the “little debts” you take accumulate in interests.

What if you knew some simple and proven ways to be debt-free quickly? Implementing them would mean better financial health for you. It becomes possible to free up cash for your “wants.” These include taking a trip or buying something you’ve always desired. All that while paying your bills on time!

Let’s not wait any longer. Here are 7 powerful tips for paying off credit card debt fast:

1. Pay More Than the Minimum Credit Card Payments

Many people only pay the monthly minimum on their credit cards. Truly, that’s the right amount for staying on good terms with your credit card company. But you need a different approach if you’re looking to achieve financial independence within a short time.^[1]

Most of your payments go toward interest costs when you only pay the minimum amount. A substantial sum of your balance remains standing. As a result, it becomes more expensive to eliminate your debts.

You don’t want to wait more than 10 years to get rid of debt while it’s possible to do it sooner. All you have to do is double that $100 minimum payment to $200 or go higher.

The good thing is that minimum credit card payments are affordable in most cases. By paying a higher amount, you reduce your interest costs, lessen your borrowing period, and boost your credit score.

2. Start With High-Interest Credit Card Debt

If you have more than one credit card debt, prioritize putting the extra money toward the ones with the highest interests. This debt pay-off strategy, known as the debt avalanche method, is essential for being debt-free quickly.^[2]

First, you need to list down all the credit card debts you have in the order of their interest rates. Next, you choose the one with the highest interest and pay a significant amount toward it each month. It can be an amount twice or even thrice larger than the minimum payment.

At the same time, you make monthly minimum payments on the other debts. Their interest charges won’t be as costly as that of the first debt on your list. You only move on to the next high-interest debt after the first one is gone. Remember that your focus is on the interest rates and not the balances.

3. Revisit Your Budget

Budgeting is useful for tracking your financial moves. Once you create a budget, some tweaks along the way can make it work for you better. One situation that requires you to revisit your budget is when you’re struggling with debts. It might hurt a bit to slash some expenses. But you also don’t want to miss out on achieving financial freedom in the long run.

You can reduce some variable expenses to free up more cash for credit card debt payments. They’re the ones that change from time to time. Some examples are groceries, fuel, and clothing.

Other opportunities for cutting down your spending lie in non-essential expenses. Instead of dining out all the time, you can cook at home more to save money. You can also share some subscriptions with friends and pay a fraction of the cost.

If you’re determined enough, you can eliminate all your unnecessary expenses and focus on paying off your credit card debt first.

4. Avoid Using Your Credit Cards

Do you want to know how to pay off credit card debt with a low income? One simple way is to stop using them. Having your credit cards everywhere you go means that you’ll be more tempted to buy unnecessary stuff. In this case, you spend money that you don’t really own and get deeper into debt.

The quickest fix to stop the debt build-up is spending with cash. You’ll be more aware of everything you can afford at any particular time. If you decide to keep one or two cards to ease the transition, always make wise choices. For instance, only use them when experiencing financial difficulties.

It’s best to categorize your fun activities under “discretionary spending” in your budget. This way, you won’t need more debt to kill your boredom. By halting your credit debt from accumulating, it’s easy to pay down what you already owe and be happy with the progress.

5. Start a Side Hustle to Boost Your Income

You’re probably turning away a lot of money by not monetizing your skills. Everyone has something that they’re good at doing. And you can use that to generate extra income for attacking your credit card debt.

If you look around your neighborhood, you can find several side hustle opportunities. It can be pet sitting, tutoring, or lawn mowing. You can start an online business by offering services such as digital marketing, content creation, and web development. Such skills go in high demand on freelance sites and job boards.

Finding clients on social media is also a good strategy to utilize your skills and make more money. Facebook groups, Quora Spaces, and subreddits are some places to look for side jobs. You only have to join a niche-specific platform, share your services, and respond to any opportunities.

It’s possible to learn a skill, practice it, and earn from it. Use the free resources online or purchase some e-courses to get started.

6. Sell Your Used Items for Extra Cash

Starting a side hustle isn’t the only way to generate extra money. You can turn unwanted items into cash for paying off credit card debt. Whether it’s an old TV, book, or furniture, there is always someone itching to buy your used stuff.

A garage sale, as much as it’s old-fashioned, is perfect for getting your neighbors and passers-by to buy from you. You keep all the money because there are no business permits or taxes involved. While you may not make much cash, it’s better than leaving your stuff to go defunct in your storage.

Other than that, you can sell your used stuff on online marketplaces. Facebook groups are great places to start if you want quick approvals and hence sales. You only have to ensure that your listing follows Facebook’s commerce policies.

When selling any pre-owned items online, ensure they’re in good shape to avoid problems with your buyers.

7. Know When to Seek Help With Your Debt

Asking for help with your credit card debt can be challenging to do. But letting it drown you is a road you don’t want to take. While you may feel embarrassed at first, it’s the best way to get back on track when you run out of options.

There are tons of non-profit credit counseling organizations that can offer you free guidance on how to escape the debt trap. An example is The National Foundation for Credit Counseling. They simply review your finances and help you determine the source of your financial problems. After that, they match you with an actionable debt management solution.^[3]

In extreme cases, the debt solution can be:

• Debt relief – where your debt is partially or wholly forgiven
• Debt consolidation – taking out one loan to repay others
• Debt settlement – the creditor forgives a significant portion of your debt
• Bankruptcy – legal process for seeking relief from some or all your debts

It’s necessary to carefully weigh your options before deciding on the way to go. Find out how it might affect your credit score and any other risks.

Wrapping It Up

Debt is a major setback when you’re trying to prosper in life. Paying off credit card debt is essential if you want to reach your financial goals. That means having more free income, a good credit card score, and even a chance to retire early. You become more productive each day because of the peace in your mind.

So, you now have some tips on how to pay off credit fast. Go ahead and get rid of that good life progress killer!

More Tips on How to Pay Off Debt

• These 6 Practical Solutions Could Help You Pay off Debt Sooner
• 5 Things to Do When You Are Buried in Debt
• How to Pay off Debt Fast Using the Stack Method (A Step-By-Step Guide)

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