Discretionary income is the key
With an increase in positive cash flow, you can direct more toward your debt. The more debt you pay down, the less interest accumulates during the following week, month, or year. The less interest accumulates, the greater the amount of your next payment that gets applied to the balance, and so on.
By increasing your positive cash flow, you can ultimately increase your debt payments. Instead of being caught in a downward and negative spiral, you find yourself in a positive, upward spiral. There is a name for this “positive cash flow” that you need to increase in order to eliminate your debt. It’s called discretionary income.
While the term sounds complex, it’s simple when you stop and think about it. It’s the income that’s left after all your required bills have been paid; you choose how to spend it. To accelerate the process of getting out of debt, you ultimately have to increase the amount of discretionary income left at the end of the month.