Most people think you need a lot of extra money coming in to pay off their debt. I would like to show you that by getting a monthly profit in your life of $100, you can pay off your debt, including your mortgage, in 7-8 years depending on the amount of debt you have.

First, I want to make sure we are clear on the concept of profit. If your finances are like a bathtub, with drains representing your expenses and faucets, you income, you have two ways to raise the water level. One is to close drains such as cutting out things you no longer need or are providing value for you. The other is to increase the number of faucets or turn existing faucets on higher. The best is a combination of both.

You also need to understand that you need to stop creating more drains.

When your water level rises, that’s profit. With as little as $100 per month, you can use the military concept of strategic concentration to paying off your debt.

Take an inventory of your debt, including the amount, payment and interest rate. Make note of the minimum payment. Continue to pay this amount even when minimum payments drop. This helps to pay it off faster.

Divide the current balance on each account by the minimum payment amount to get a number. By adding the $100 to the easiest paid off debt, which is the debt with the lowest number, you can accelerate its pay off. If you are paying more than the minimum payment on other accounts, move the excess to pay more on the account you are accelerating. Once the current account is paid off, you then snow ball that payment to the next account. Your mortgage will probably be the last debt to pay off.

Many people have used this to become completely debt free much faster than they ever thought possible. After the debt has been paid off, you can start paying yourself with the money you were paying off your debt with. That makes it an easier way to build up your savings.

How do you come up with the extra $100 profit? One way is to start a home based business. You can profit monetarily in at least two ways – more money coming in and less taxes going out. You will have to check with your tax adviser, but many experts say that the average person can save over $300 per month in taxes by running their own home based business.