Today, I have a simple debt reduction tip for you.
Save all of your change to apply towards debt reduction. Each day that I come home, I have a small tray where I empty my pockets of the various things that have collected there throughout the day. That usually means I have a few coins in my pocket that will go from that tray to a shoebox where they collect for a full year. At the end of the year, I will roll the coins and take them to the bank to exchange for cash.
This year, I had $278 in coins saved. That’s an average of about $.75 per day that I saved in coins. Now, if I put that in the bank and earn zero percent interest, it is not going to have an impact immediately. However, if I pay down high interest debt with it, suddenly it makes a big impact.
By using that money to pay down your balance on a credit card or store account or even your mortgage, you are taking years off the amount of time you will be in debt. Do this small thing every year and it will develop into an easy habit to help you reduce debt.
If you don’t use much cash or have lose pocket change, set a goal to save $1 a day. Put $15 in a shoebox every time you get paid, if you are paid twice a month. At the end of the year you will have saved $360 that can help you get out of debt.
Small decisions become big decisions when applied consistently over a long period of time. If you do this $1 a day tip for 40 years, you will pay down $14,400 of debt. That is close to the current national average for consumer debt in America.
