Paying off debt is like getting an ongoing increase

Sometimes (perhaps not often enough) we get some extra money – be it a salary increase, a promotion at work, side hustles paying off, for some lucky folks chunky enough dividends from their various investments.

I was fortunate to have received some extra money this year. Sadly, the petrol price increase and the ripple effect eroded some of it, taking me back to my standard of living before the increase.

However, there was still something left – not much, but something.

I can contribute slightly more to my cash savings and my son’s tax-free savings account.

You could be reading this after an increase or promotion, but have a pile of debt.

I suggest before you even look at quality of life or saving more, put more towards debt repayment.

As much as knowing no debt collector is going to annoy you with arrangements will let you sleep better at night, paying off the debt gives you a permanent increase.

All those instalments are now yours. You can do with them as you please.

Hopefully you don’t see another opportunity to take more debt with that extra money but pay off the rest of the debt snowball-style.

This article was first published on Just One Lap

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