Monday, December 20, 2010

Shred Credit Cards- Reduce Tax Debt. You Win.

One debt quickly leads to another. When I worked at the IRS nearly every person I talked to owed not only the IRS, but a multitude of creditors. Once you go out of whack, it's hard to gain control on your finances.

What was the advice I offered those who owed credit card debt and IRS debt? Shred up your credit cards, because the IRS will not count your credit card debt as a necessary expense to pay. They want their money first.

Credit cards are not vital for living (though many pleaded for me to believe otherwise). If you're the type that can get out of control with spending, a credit card is not for you. Shred it up, pay it off, and move on free from one more debt.

Today personal finance blog Free From Broke wrote about a Shred Your Credit Card contest:

From December 15th, 2010 through January 29th, 2011, can can enter a video of yourself destroying your credit card(s) or why you are done with credit in 2011. Upload the video to and you can be entered to win.

More info on entering in this video:

If you're going to destroy your credit cards anyway (great way to start a new year) you can win cash and other prizes if you upload a video of yourself destroying the plastic.

Here is what you can win:

- One (1) GRAND PRIZE of a $1000 Visa(R) Gift Card will be selected and awarded on January 31, 2011 to the submission that receives the most votes during the entire Period of Eligibility.

- One (1) weekly prize of a $50 Visa Gift Card will be selected and awarded each Wednesday beginning on December 22, 2010 and continuing through the duration of the Period of Eligibility to the submission that receives the most votes during the course of the preceding seven day period.

- Two (2) Most Creative Shred Awards totaling $600 in Visa Gift Cards be awarded on January 31, 2011 to the two submissions that are deemed to be the most unique, effective and edifying credit card destructions as determined by PerkStreet and The Lending Club.

- At least $125 and up to a maximum of $300 in Editorial Consolation Prizes paid in the form of Visa Gift Cards will be awarded on January 31, 2011 to submissions selected by personal finance bloggers selected by PerkStreet and The Lending Club.

I realize the irony of a Visa Gift Card being distributed as a prize, but it's just that, a gift card, not a credit card.

Free From Broke writer Craig will select one winner to receive a $25 gift card, so make sure when you upload your video, select in the drop-down list for the question “How did you hear about this contest?“  so he knows which videos to look at.

Disclaimer: Don't worry, I'm not paid to write about this. I just thought it was a nifty offer. If you're going to destroy your credit cards to reduce your debts, why not try to get some cash out of it?


Anonymous said...

This is a nifty idea, actually! Now, I hope I can remember to do it!

Craig said...

Thanks for mentioning the contest and mentioning my site!

I think it will be fun seeing the different videos that are produced.

2020 tax resolution said...

This is a nice idea. Thanks for mentioning it. Very nice of you.

Anonymous said...

Gotta try this!

Neilson said...

Good afternoon guys,
These are good points here. Make it your priority to get out of debt. My situation was a little different to most because I had a partner involved with my debt. But I was still able to find someone to help me. It was from a site that had an unlimited number of debt experts in my area. I just pressed a button and out came names of experts in my location. I picked several and chose one and it was the best advice I ever took. You can use their easy to use free directory… not sure but I think it's still at

custom credit cards said...

Credit card issuers usually waive interest charges if the balance is paid in full each month, but typically will charge full interest on the entire outstanding balance from the date of each purchase if the total balance is not paid.

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