Make Payments on Your Debt Whenever You Can
Leo Babauta of Zen Habits published a guest post over on Get Rich Slowly since J.D. is on vacation. Leo’s post is about eliminating debt using large bursts instead of paying off debt gradually. Now of course the best way is to do both. Leo’s article has some great ideas and is something everyone working on getting out of debt (or trying to save) should read.
One thing that I have started doing is making payments on my debt whenever I can. NCN over at the No Credit Needed blog got me started on this concept. He also recently posted about the topic as well.
Whenever I get unexpected money, I take the check to the bank and deposit it. I then login to online banking and make a payment against my debt in the same amount. I’ve made 3 payments against my Chase Credit Card already this month.
Recently we’ve received checks for: Insurance Dividends, Insurance Refund for overpayment, refund on our unused camper storage, and a few other items. Total amount was around $100, and all of it went towards paying off my Chase Credit Card.
My wife and I have been recently looking for opportunities to use extra money to pay on our debt including using spare change, selling items on eBay, buying stuff dirt cheap at auctions and selling it on eBay, having a garage sale, etc. Anything we can think of to generate extra income or find extra money we’re doing.
Commenting on my recent Ask the Readers post, Ron posted the following comment:
Here is something I have been doing for years. I save change left over from the day just like many other readers do, I’m sure. But I also save my dollar bills.
The key to this (so it becomes less noticeable) is to spend your day to day cash normally. Don’t save back your dollar bills during the day. If something costs 50 cents, break the dollar. If you end up with no singles at the end of the day, oh well. But if you do, save them back. When I get around $50 or so, I deposit it in my online savings account.
I’ve never tracked this but I estimate I’ve saved several hundred dollars a year doing this and I never miss it.
This is a great tip, and something I started doing this week.
What creative things are you doing to pay off your debt or save money faster?