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How to Increase Income to Decrease Debt


In many cases, credit counselling sessions are more about an exercise in budgeting than about how to use credit. Quite often, a change in perspective and a better understanding of how credit and interest payments work can be enough to send our clients off on the path to a debt-free life.

Sometimes, however, there is just no way to make the numbers work. Getting out of debt becomes a matter of making more or spending less money. If the household budget has already been stripped down to the bare minimum, the only other option is to find ways to generate more income.

Asking your boss for a raise might work, but in case it doesn’t, here are some ways to boost your income so you can decrease your debt load.

Offer Home Based Services

Try offering your babysitting or yard work services in the neighbourhood. If it’s something you do “while you’re at it” for your own household, this can be an easy way to pick up some extra income without having to sacrifice a lot of free time. This is an excellent way to earn money while being a part of the local community.

Sell Unneeded Items

Many of us have an untapped fortune sitting in the basement or garage. From unused baby items to outgrown clothes and long-forgotten comic book collections, there are almost always items kicking around the house that could find a new life somewhere else. If you apply the proceeds to paying off debt, it’s a gift that keeps on giving in the form of lower monthly interest payments.

Peddle Your Creative Wares

If you’re the crafty sort, an Etsy shop could be a great way to put your creativity to good use. You get to indulge in your favourite hobby, while others are able to enjoy your crafty creations. A word of caution, though: when setting your pricing for items, make sure that it’s still a worthwhile endeavour once transaction fees and shipping costs are factored in!

When Income Isn’t the Problem

When you’re trying to get out of debt, the key to long-term success is a change in habits. If you bring in more income, only to spend it all and then some, it will be tough to find your way out of debt. If this is the case, the credit counsellors at D. Thode and Associates Inc., can help you better manage your finances for the long haul.

Contact us today to start developing a sound strategy to get out of debt for good!

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