Debt can be discouraging. It’s difficult to make headway when you find the interest on your debt reducing the effectiveness of each payment. One of the best ways to get over this problem is to earn money and apply that amount toward an extra principal payment. Reducing your principal will also reduce the amount of interest you pay. As you pay down your principal, interest portions of your payments will decrease, making each installment more effective.
Finding the money to pay off that debt might be easier than you think, though. “Getting out of debt doesn’t have to be that hard,” says Melody Juge, the founder and managing director of Life Income Management. “There are plenty of ways to make a little bit of extra money and go about paying it down.”
Clear Out the Clutter
One of the best ways to approach debt pay down is to sell items that you no longer need. Go through the basement and the attic, identifying potential items to sell. Not only is this a good way to earn extra cash, but it also helps you de-clutter your home. Many local towns offer free online Classified ads, and you can also post on Craig’s List or eBay. You might be surprised at how much stuff you can get rid of -- and how fast the cash adds up -- when you get started.