- Personal Finance»
- Debt & Bankruptcy
Paying Off Debt with Hubpages Income
In November 2005, I purchased a two-bedroom plus drawing dinning flat in Patel Nagar, Delhi for approximately 16 lakh Indian rupees. I bought this house taking a mortgage loan from ICICI bank worth 12 lakhs 30 thousand Indian rupees. At that time in 2005, my interest rate was 7.25% reducing balance whereas today it is 12.25%. It almost doubled in 2009 nearly 14% for six months. Till today January 2010, I have paid approximately 8 lakh rupees to ICICI bank in the form of monthly installments (rupees 11770/- per month) but unfortunately out of those 8 lakh rupees, only 50 thousand rupees have gone towards the principal part and 7 lakh 50 thousand rupees have gone towards the interest part. I admit that the value of my home has increased to nearly 45 lakhs rupees in 2010 from 16 lakhs in 2005 but as this is the home I live in and is not an investment property, it is my bad debt which I should pay as soon as I can.
In October 2007, I joined hubpages and started writing articles and earned a few cents each day for many months. It was in June 2008 when I received my first adsense check via hubpages. The day I received my first check, I set a goal in my life to start writing more and more articles and bring my part-time income from hubpages to at least near to Rs. 11770/- per month in one year to pay off my monthly home loan installment. I was successful in doing that.
Understanding HubPages - Making Money with Hubpages
- HubPages New User Signup
Write Articles - Earn Money - Pay Off Debt Fast
Now my installment was paid off via my adsense check earned from hubpages but I wanted to pay my remaining home loan debt very fast. For doing this, I set a goal of achieving at least 16000 rupees in the form of adsense check till December 2010 and I was successful in doing that. Now my next goal is to increase my adsense income to at least 24000 rupees till December 2011 to pay off mortgage early.
Now here is my step-by-step plan for paying mortgage debt with hubpages income:
- January 2011: Open one recurring deposit account depositing Rs. 4000/- per month for one year. After one year, I will get more than Rupees 50000/- as principal and interest on my deposit.
- March 2011: Open another recurring deposit account depositing Rs. 2000/- per month for one year (assuming increased income in March from writing at least 40 personal finance articles in January 2011).
- June 2011: Opening another recurring deposit account depositing Rs. 2000/- per month for one year.
- September 2011: One more recurring deposit account for Rs. 2000/- per month for one year.
- December 2011: Another RD account for Rs. 2000/- per month for one year (assuming Rs. 24000 per month of income from hubpages).
Increment in Hubpages Income
4000 x 12 months in Recurring Deposit
2000 x 12 months in Recurring Deposit
2000 x 12 months in Recurring Deposit
Now what will happen, whenever one of my recurring deposit account matures, I will start a new one with the same monthly money and take out the money I deposited since the last year and pay as part payment for mortgage loan, so I will start paying part payments from February 2012, another in April 2012, then July 2012, then September 2012 and so on. It should also be noted that part payments don’t carry any service tax or additional charges on the loan payer. My idea is to pay off my mortgage debt in 7 to 8 years (84 to 96 months. Today, my mortgage debt is still remaining for more than 300 months.
30DC Day 11 - HubPages
In this way, not only me but several other hubbers or article writers from different parts of world are earning money and some like me are also using this excellent revenue sharing site to pay mortgage debt in a fast way.
Also, the above investment advice was for starting recurring deposits without investment risks and having average interest rates. There are several other deposit schemes and investments yielding high returns that a person can start to pay off debt from increased income or extra money he earns every month and manage his personal finances with the help of hubpages revenue.
Important Points to Note:
1. The income earned from hubpages is not my full time income. I do a full time job for handling my other expenses.
2. Also, hubpages income is not only limited to adsense earnings. For increased expenses every month, hubpages income from Ebay, Amazon, and Kontera can be utilized.
3. Hubpages has a wide audience and large community to answer all your questions regarding setting up an account and earning money.
4. Hubpages engages its writers in different types of contests and competitions on a regular basis which helps in boosting enthusiasm among writers community. Eligible candidates are awarded with additional prizes that are apart from their regular income.
5. If you have not joined hubpages till now, join it for earning money