Your debt payment fund is also known as your disposable income. This is the amount of money left over after you have deducted the basic necessities from your income. If you have a lot of debts, you need work on a bigger fund to be able to afford the minimum payments on all your credit obligations. When you have none of this, that is a problem.
If you do not mind damaging your credit score, you can opt to either enrol in a debt settlement program or file for bankruptcy. If you want to keep your credit score from falling, your only option is to increase your current income.
The first thing that usually comes to mind is getting a second job or working longer hours at work. While that is effective, that is not the only way to increase your disposable income.
So what will it take to increase your debt payment fund without the need for a second job?
The major thing that you can do is to tighten your budget. That would really help increase your disposable income. It means letting go of the things that you do not really need - or at least opting for the more economical version of it. For instance, if you want to go on a date with your special someone, a romantic walk in the park or a candlelit dinner at home are great alternatives. If you need a new pair of jeans, you can skip the designer labels and opt for off the rack pairs that sometimes last longer.
There are certain expenses that you cannot completely compromise. Food for instance is very important. To save on this, you can cut up coupons. These will only save you some cents or a dollar or two on a purchase. When you add that up, it can amount to a significant figure that can put a huge dent on your debt balance.
Downgrading is also another way of increasing your debt payment fund without the need for longer working hours. If you live all alone in a 3 bedroom home, you may want to downgrade to a one bedroom apartment. Or if you have friends looking for a place to rent, have them rent two of the room in your home. A sports car can sometimes consume so much gas and getting a cheaper pre-owned car can be more economical.
The whole idea is to live way below your means so you have more to allocate for your debts. You don’t really have to exhaust your strength or mental abilities working for a higher take home pay.
Click Here to find out which is better, lower your expenses or increase your income. Get more money making advice from http://www.nationaldebtrelief.com/personal-finance-articles/ to achieve a debt free life faster.