How To Scare Up Some Extra Cash To Pay Down Your Debt [Slideshare]

When debt looms over you like a razor-toothed monster, you may want to run and hide, but confronting the beast is the only way to defeat it. By earning extra cash to pay down your debt, you can drive the monster back to the grave and become debt-free!

The problem with being in debt is that debt causes more debt. If your debt reaches the level where it becomes difficult to manage, and you fall behind, you’re hit with late fees and higher interest rates. If you only pay the minimum amount due each month, you’ll end up paying thousands more than if you’d paid with cash in the first place. Alternatively, you may be tempted to take on more credit to pay for the debt you currently have. Debt brings more debt.

Conversely (and here’s a big secret), having money brings you more money. Aside from avoiding losing money on fees and being charged a higher interest rate, if you can pay for things with money that you have rather than using credit, then the more money you’ll have to invest and make more money. Debt leads to more debt; savings leads to more savings.

Unfortunately, debt usually grows much faster than it shrinks. How do you climb Mount Everest? One step at a time. By chipping away at small chunks of your debt, you’ll eventually get to where you need to be financially and be able to completely pay down your debt.

Here are some ways to scare up some extra cash that you can put toward your debt this Halloween:

One of the ways you can avoid debt is to be prepared. If you have no savings and an emergency pops up, such as an unexpected car repair, you’ll end up falling deeper into debt. If you set up an emergency fund in a dedicated account and have money automatically deposited into the account regularly, you’ll eventually have enough set aside as a cushion in case you need it. It doesn’t matter how little you can afford to put into it; the important thing is to start now so it can grow. An emergency can come out of nowhere, whether it’s an injury or illness, job loss, or divorce. However, if you can have six months’ worth of expenses set aside, you’ll eliminate the need to resort to using credit.

Being haunted by debt is scary for anyone. By looking for ways to come up with some extra cash to pay down your debt, bit by bit, you can bring down your balance and conquer the debt monster once and for all!

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