Don't use plastic to pay down mortgage

If you added an additional $700 principal payment each month, you would increase the total amount paid in one year toward the principal amount of the loan to $10,838.

So, over the next seven years, you will be decreasing your principal by about $70,000, but you have far less risk to your credit and your financial stability.

Be sure to check the terms of your mortgage loan to assure you can make principal payments without penalty.

Finally, if I had an extra $700 in unallocated cash flow each month, I'd be adding to my emergency fund to get it to the full six months of expenses that I recommend for unexpected bumps in the road.

The road is already bumpy and no one knows what new excitement lies around the next corner. Save, save and then save some more!