Sunday, 1 January 2012

Increase Your Income and Pay Off Your Debts

By Robbie Bainer


Anytime you can increase your income even by a little, you will be able to pay down debt and that will increase your credit score. When you have a less than ideal credit score, the interest you pay on loans is going to be higher. The only way to get lower interest rates is to increase your income and reduce debt.

How do you increase your income? You can begin by asking for a raise at your current job, or see if you can work any paid overtime. You can make a list of your skills and qualifications and look online for freelance work that you can do after hours. Or perhaps you have always wanted to be a bartender. You could make some great money bartending on Friday and Saturday nights.

As you rapidly pay down your debt, your credit score will rapidly move up. Once this happens, you will qualify for loans at lower interest rates. You may even be able to apply for a consolidation loan to refinance your existing debts.

Whether you increase your income a lot or by a small amount, any additional funds that you can put towards paying off your debts will help you to improve your financial status.

It may only take a few months of working at another job or extra hours for you to move on to the later stages of your credit repair plan so you can refinance your loans and get a lower interest rate and lower payments.

Many people are also finding that they have more "things" in their home than they need or even use. Look around your home and make a list of things that you no longer use and could sell. Consider setting up ads on kijiji.com, eBay.com, or the classifieds section in your local newspaper. As soon as you receive money from the items that you sell, use that money to pay off your debt. If you don't do it right away, you may end up spending it on new items.




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