Anyone who’s dealt with significant debt knows how difficult it is to write out a large cheque every month to pay it off. Instead, financial weblog FiveCentNickel suggests paying off debt in micropayments:
In short, pay what you can afford, and then scrape together whatever else you can during the month and send in multiple, smaller payments… Believe it or not, [a friend]got to the point where he was sending Citibank an extra $5 each and every day via online billpay. By making a game out of finding an extra $5/day, he managed to stay motivated and slay the debt beast well ahead of schedule.
The benefit of the micropayment may be purely psychological, but if paying smaller chunks toward your debt on a regular basis is easier for you than holding onto that money and then losing it in one large chunk, micropayments might be for you. If you’ve used similar methods, let’s hear how it worked for you in the comments. Photo by Joshua Davis.