4 Ways to Pay more each Month Towards Your Debt
Everyone knows that making the minimum payments on your debt each month might keep your budget in order, but it won’t do much to actually get you out of debt. Until recently, credit card companies were able to charge consumers less each month than the interest they accumulated, assuring that they would stay in debt forever if they continued to just make their minimum payments. While it’s no longer legal to do this, it’s still possible to pay the same debt for years without seeing any real progress.
If you want to get ahead on your debt, you’re going to need to come up with a way to pay more than what you have to. Any extra money you put on your debt can go towards paying the principal, reducing the amount of interest that will accumulate on the debt. If you’re looking for some ways to get some extra cash try these ideas:
- Plant a garden. Even if you just have a few containers on your apartment porch, it’s possible to raise a few vegetables or herbs. Use your produce to reduce your grocery bill, then devote the money you save towards your debt repayment. If you have more land, consider raising a crop that you can sell at your local farmer’s market, or growing produce that you can make into a product such as herbal soap or fruit preserves.
- Consolidate your debt. A debt consolidation loan will combine all of your high interest debt into one low interest loan. In addition to lowering what you pay in interest, you’ll also be able to lower your monthly payment. If you continue to pay what you were paying before taking out the debt consolidation loan, however, you’ll get your debt paid off even faster.
- Have a yard sale. If you haven’t cleaned out your closets and garage in a while, then it’s time. Take the stuff you haven’t used in a year and sell. Use the money to make one lump sum payment and pay off a loan. Then, take the money that you were using for that loan and devote it to another loan or credit card in order to get that one paid off faster.
- Get a second job. A few hours a week at the local bar or a restaurant can earn you enough to get your loans paid off within a couple of months.