Saturday, September 1, 2007

Day 4 Of 33 Days And 33 Ways To Save Money And Reduce Debt : Extra Payments Extra Deposits

No Credit Needed is posting a series on 33 Days and 33 Ways to Save Money and Reduce Debt. Day 4's topic is on making extra payments and extra deposits. The idea is to make extra payments because creditors calculate debt on a daily basis. I am a big supporter of this method, but it can also proove difficult if you do not already have an emergency fund in place. (Big red flag... this has been one of my greatest downfalls in my efforts to repay debt, but I'll get into that in later postings.)

I find that creditors are very supportive of receiving those extra payments, but I may have to explain what it is. Oddly, its my brokerage that seems to scoff at deposits that they don't deem as worthy. These brokers, who seem fresh out of school, must be able to make large deposits if they don't wish to be bothered by my attempts at saving. I on the other hand am quite happy when I can deposit an extra $25. One of these days, I will bring them a copy of "The Millionaire Next Door" by Thomas J. Stanley and William D. Danko to read. Until then, I just smile when they roll their eyes.

Some ways I've found extra money to make additional payments include housesitting/pet sitting, recycling cans for deposits, FSA reimbursements, mileage reimbursements from work, and e-bay sales. I am always looking for new ways to increase income.

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