By paying your bills off early you can save yourself a lot of money. Paying your bills off early involves sending in extra money each month. Find different ways to discipline yourself to not spend money and add that extra amount to the payments. Once you pay off your debts, you may have extra cash to spend on thing you couldn't afford before or be able to build up savings.
Pay Extra
One of the best things you can do to expedite the paying off of your bills early is to pay a little bit extra each month. Even if you can only send 10 or 20 dollars, make sure you make it clear that you want that amount applied to the principle balance. Then next month you will be paying interest on a smaller balance. This works well for all bills that you pay interest on, from your credit cards to your mortgage. If you can may one extra payment on your mortgage per year, you can save yourself thousands of dollars over the course of your loan, resulting it early pay-off. Find the extra money to send to your bills in little ways, such as not buying that cup of coffee every day or giving up cigarettes. If you can only tackle one bill at a time, start with the bill that has the highest interest rate to save the most amount of money.
Set a Goal
If you want to have your bills paid off by a certain date, set a goal. This may be a little harder to do for your mortgage, but you can do it for credit cards and other smaller loans. Decide when you want to have your bills paid off by and count out the months. Divide your payments up into that number of months. For example, if you want to pay off one of your debts in one year, take the total amount of the bill and divide it by 12. You may want to add a little bit extra to the payments each month to account for accruing interest. You could also divide the total debt by 11 and then leave the 12th month to pay whatever amount is left on the bill.
Consolidate
Consolidate your debt into one loan and one payment each month. This works especially well for those who have lost jobs or extra income and cannot afford to have nine different debt payments each month. If this is something you want to do, make sure you consolidate your existing debts into a loan with a lower interest rate. If you get a loan with a higher interest rate you are doing nothing but increasing the life of your debt. For many people, consolidating debt helps to decrease their monthly payout, sometimes by hundreds of dollars. The key here is to pay more than the loan payment each month. Yes, you may not be able to pay as much each month as you did when you had several separate bills, but with one lower payment, you can always add a little bit more to expedite the process of paying off your bills early.
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