The primary goal of improving your cash flow to put toward outstanding debts is to be smarter about the way you approach your debt. There are some ways to try to increase your cash flow in a short term capacity, but you should be prepared to put in a lot of work to make that happen.
For example, you can ask for a raise at your current job, or get a part-time job on the weekends to make ends meet. Anything you make at a part-time job can go directly to debt payments. Or, you can hold a yard sale, post items on Craigslist, or sell old clothing on sites like Depop to make a little extra cash. The key to a successful increase in cash flow is to make it some type of recurring income, so you’re better off with a side gig where you know that you’ll make x dollars extra per month. Making consistent progress on your debts takes work and consistent payment behaviors.
You can also take a hard look at your expenses beyond the basic necessities. For example, do you lose a lot of money per month in subscription services, lawn care, or miscellaneous tasks for the home? Are your systems for paying your bills efficient? What’s working for you, and what’s not?
Another way to tackle your debts is to make higher payments on your debt with the highest interest rate, so you can theoretically pay it off more quickly than the other lower interest debts. Organizing your debts by interest rates is a popular debt management technique used by experts and recommended by financial advisors.
Upping your monthly income or cash flow will take a lot of work, but it doesn’t have to be forever. Contact Cain and Daniels to make a plan for your debt payments today.