How to get out of debt on a low income

Paying off your debts with a low salary

If you are on a low income, you might think that you can’t get out of debt but there are some steps that you can take to get yourself out of a debt situation even if you don’t make a whole lot of money. Here is how to reduce your debt and find the financial freedom that you seek.

Financial Advisor

If you’re not making a lot of money and you are in debt, consider speaking to a financial advisor about your debt situation. They can give you tools and techniques that can help you get out of debt in less time. There may be different accounts where you can put your money or you might be able to put a small amount of money into an investment and use capital gains or other money you make from that investment as a payment on your debt. Finances can be difficult to understand and when you are in debt you’re probably under a lot of stress. A financial advisor has the experience behind them to help you understand your debt so you can begin it to reduce your debt no matter what your income level is.

No More Debt

If you are in debt right now, the best thing you can do is not to add more debt on top of what you already have. This means you have to start living within your income range. You cannot keep adding debt to bills that you already have because you’ll just get yourself further in the hole. You need to start making some sacrifices in your life and reduce expenditures that are not absolutely necessary. A lot of debt is caused by unnecessary spending as we simply by things we cannot afford. To reduce your debt even with a low income, stop spending money in areas dead or not an essential expenditure.


To get out of debt on a low income you have to start budgeting your money then you have to be very strict with this budget. You have to put aside enough money for each bill that you need to pay. If you can’t afford to pay the maximum amount on each bill that you owe, You should put as much money as possible on each bill that you get so that you end up paying down the debt in less time. Set aside enough money for your essential expenditures and budget every last penny that you have coming in. Only by budgeting your money will you know where your money is coming from, how much you have, and how much you need to start paying down your debt.

Many people that are in debt don’t have a budget at all and they’re simply throwing money at their debts without understanding their debts fully. Once you have a broader picture of your financial situation you can start paying down debt and budgeting your money in the right way.

Cut Back

One of the easier ways to begin to reduce your debt is to start to cut back on things in life that you don’t actually need to survive. This can include things such as magazine subscriptions, television, cell phones, snacks, dinner out, coffee in the morning while driving to work, and so on. All of these are small expenses on their own, but they add up to a significant amount of money each month especially if you were making these small purchases every day. When you are in debt, you need to cut back on these small expenses as much as possible. For example, instead of getting that coffee in the morning while going to work, make some at home and take it with you. Don’t go out to lunch while at work, make a lunch at home and bring it to work with you. These might all seem like small things but it all adds up over time. This will give you more money in your pocketbook that you can put towards your debt and you will find that it is easier to pay down debt when you stop making simple purchases that don’t matter to your overall survival.


You should prioritize your debt by the most important debts that you have. This type of debt is usually credit card debt, car payments, mortgages, and other large debt that you currently owe. You need to prioritize debt so you’re putting the maximum amount that you can on the largest debt that you owe. By reducing these large debts it will free up money so you have it for other expenditures that you might need. if a whole lot of money, prioritize the debts that you can afford to pay off or just put as much as you possibly can on that debt.

You have to bear in mind at that if you’re just putting a small amount on your debt each month, all you are doing is paying off the interest rate of that debt. You want to dig into the principal amount so you should be putting as much money as possible on the debt. for example, if your minimum payment on a bill is $40, try to raise that to $60 or even a $100 if you possibly can because that will dig into the principal amount that you owe and you won’t just paying off the interest rate.

Cut Up Credit Cards

If you are in debt and don’t make a whole lot of money, stop living with a credit card because it’s far too easy to rack up more debt with a credit card. You can keep one credit card around but only use it for an absolute emergency and look to reduce the amount of money that you are allowed to have on that credit card as this will make it a lot easier for you to stay within the range of that credit card and you’re less likely to rack up debt. All other credit cards that you own should be cut up and you should not use credit cards when you are in debt because it’s far too easy to get into further debt with a credit card.

Another thing you can do is to start to look for a credit card that has a better interest rate or try to have the interest rate of your credit card lowered by talking to your credit card provider. As long as you were making payments and trying to pay off any credit card debt, a provider might be willing to lower your interest rate with can make a big difference in how much you were paying each month.

Consolidation Loan

If you don’t make a lot of money you might consider consolidating your bills into one monthly payment. This means that all of your debts are going to be paid off but you will have one large bill that you need to pay a bank or financing company. This gives you one payment that you make each month but you’re not paying your creditors you’re paying the bank for the money that they have loaned you to pay off your debts.

A consolidation loan can make it easier for you to pay your debts. Keep in mind that that the payment that you’re going to be making is probably significantly higher than what you were paying on each bill so you have to have enough money coming in for you to consolidate your debts.

Work More

When you are in debt and not making enough money, you need to look at ways to put more money into your pocketbook. This might include having to get a second job but by doing this, you’re going to have more money available to pay off your debts. Your goal should be to ensure that your debt is paid off as soon as you can because if you keep adding debt on top of debt you already owe, you’re not going to get anywhere.

There are many different jobs that you can do with such as freelancing online which will put money in your pocket. These allow you to take simple jobs even in your spare time yet or going to pay your money so you can begin to pay off all the debts that you owe. This can help you even if you have a low-income job.

Speak to Creditors

If you’re not yet ready for a consolidation loan, consider speaking to your individual creditors to see if there are ways that you can reduce your payments that you give them each month. If you are making payments, they might be willing to speak to you about reducing interest rates or otherwise making the payments easier for you. Some of them may not be willing to negotiate but others might be. This can help you save a significant amount of money so don’t be afraid to speak to your creditors about your bills and how you can reduce your payments that you make each month.


It might be more difficult to get out of debt with a low income, but it is possible. You have to make the debt a priority and work to have this debt paid off. You might have to make some sacrifices in your life, but it is well worth it to reduce debt and finally find financial freedom.

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