OK, so you're convinced that it would be nice to prepay your mortgage. But you're having trouble paying the monthly bills, much less adding money to the monthly check to the mortgage company. If you're having troubles with your monthly bills, hopefully you've implemented a plan to pay off your credit card debts. Part of that plan says you put aside a specific amount each month that pays off old credit card debt. Another strategy would be to apply part or all of any increases in your income to prepaying the mortgage.
Some people are fortunate enough to receive a periodic salary increase or a bonus.
It's easy to just let that money be swallowed up in your regular budget. If you have the time and inclination you might develop another source of income. Sales from crafts projects, neighborhood handyman jobs or working each Christmas season in a department store can generate some extra money. A little work now can have big paybacks down the road. Next week we'll show you how you can easily build a spreadsheet that will allow you to know exactly what's happening with your mortgage.