Reduce Debt by Increasing Income
When you are trying to eliminate debt from your life, there are two components that have a direct influence on the time it will take to eliminate the debt:
Reduce Monthly Expenses.
One component to eliminating debt is the amount of your overall monthly expenditures. If you can find ways to reduce your monthly expenses, that will result in more money being available to pay towards debt that month. However, expenses can usually be reduced by only so much, although that amount is typically much more than many people are willing to accept.
Increase Your Income.
Increasing your income can vary from something like an additional part-time job in the evenings, selling old items on eBay or other related sites, or trying to find yourself a better paying job.
As I am sure you can imagine, some options are less feasible for some people and more feasible for others. It might not be the easiest task to squeeze in an additional part-time job, as family needs may outweigh the additional income that can be earned. Selling items online can be quite lucrative and usually can be done in your free time, we all have too much of that, right? 🙂
Finding a better paying job might be the easiest way to increase your income. While this certainly isn’t an option for everyone, changing jobs is often the quickest means of increasing your income as new jobs are typically not a lateral move. It can be scary to change jobs, no doubt, but you owe it to yourself to at least do some market research on current salaries and see how your salary compares.
So what will it be for you, reduce your monthly expenses or increase your monthly income? Or better yet, how about both?