Ideally, paying for more than the minimum of your credit card debts will lead to a lot of things. Not only will you save on the interest rate amount, you also get to a debt free life a lot faster. A life that is free from debt is healthier, happier and a lot enjoyable since you do not have to deal with the stress and frustration day in and day out.
If you like that scenario, you need to focus on increasing your disposable income. Now this does not only require getting another job. Sometimes, you only need to manage your household finances more wisely.
It is all about budgeting and creating a spending plan. You simply get the total income that comes in every month and deduct the basic expenses that you need to spend for to survive. The key to get the most out of your disposable income is to work on your expenses.
Instead of working long hours, you can look at where your money is currently going. Are you spending for a cable subscription fee with channels that you do not even watch? Do you still have magazine subscriptions that have online version you can read?
What about your expenses at work? Instead of eating out every day, why don't you pack your lunch made out of last night's dinner? Or you can offer carpooling services to your colleagues so you can save on gas. The company to and from work can also build friendships.
In terms of the necessary spending like clothing - you don't really need that designer label. Sometimes, the generic brands will last longer.
The bottom line is filter out your expenses. You don't have to get rid of them, just make sure you are getting the best value out of them.
Another way to save on the cost of your basic necessities is to cut out coupons. Through these, you can save on a lot more than you can imagine. The small discounts will add up to a huge amount at the end of the month.
You can also look at your present items and see if you can downgrade. For instance, if you are a family of 3, you don't need a four bedroom rental house. You can fit in a 2 bedroom home. You can purchase a sofa bed so you can convert your living room into a makeshift guest room when you have family or friends over. A luxury car can also make you spend a lot in terms of gas and maintenance. Better to sell that car and get a cheaper yet some sturdy car that will serve its main purpose - get you around.
The key is to live way below your means so you have enough to allot for your disposable income. This way, you don't have to tire yourself out just to get more funds to pay off your debts.