Every year all of us receive free money we either never expected or never think about.

You could put this money to good use paying off your debts and save yourself, or even earn more. So what is this mystery free money?

I have put a list together of sources for free money most of us would come across each year.

Birthday money

We all have gotten money from our parents, grandparents, and friends on our birthday. Instead of spending it, try using it to pay off some debt.

Christmas money

Same goes for Christmas time. Get into the habit of putting that free money to good use. You could even ask for money instead of gifts if you know your relatives or friends won’t feel too bad about giving you money. There are even ways to sell your unwanted gift cards for cash.

Tax refund

You wait for it every year and every year you end up spending it. So, why not save it instead and be debt free sooner. See for yourself!

Inheritance

Every now and then you could come into some money from loved one who have past on. What better way to honour their memory than to become debt-free and financially independent.

Items sold

Use any money you gain from selling unwanted items for debt reduction.

Money you find

Every now and then I find money, either in public or in my own home – it may not be much, but it could save you a lot more in the future if you use it to pay off some debt.

Money you forgot about

Ditto for money you forgot you had. Use this “found” money to better your situation in the future.

By using all of this free money, you can put a nice chunk into your debts each year, which could save you hundreds or even thousands of dollars on interest payments over the life of the loan.

What free money could you use to reduce your debt?