![How To Get Out Of Debt Fast On A Low Income: 7 Tips [When You’re Broke]](https://passiveincomeideas.co.uk/wp-content/uploads/2019/01/12-1920x1280.jpg)
“How to get out of debt on a low income? I just don’t earn enough to make it possible.” Perhaps you’ve thought that recently too.
Contrary to popular belief, it is possible to get out of debt even on a low income. Provided you have a Get Out Of Debt plan.
Many of us find ourselves in serious debt, due to various reasons. With banks throwing
money at low interest rates at us like crazy; it’s been easy to rack up huge debt that’s even higher than our annual income. This make debt difficult to get out of.
Furthermore, very few people have huge annual earnings. This makes paying off debt difficult, but it’s not impossible; and there are some helpful ways to pay off debt faster.
I’ll show you how to get out of debt, even on a low income, through strategies they have proven themselves to millions of people just like you.
It’s going to take action from you, though. Commitment. Resilience. You will need to stick to the Get Out Of Debt plan even when you don’t want to!
Most people wait for the next big pay rise, the next promotion at work, the big Bitcoin trade or lottery win, for the money to get out of debt. Don’t be “most people”. Get out of debt fast, as soon as you can with what you have now, and the tools I’ll teach you.
We’ll show you how to get out of debt quickly. Furthermore, you don’t need to be making huge money to start paying off debt.
Reduce The Cost of Your Debts To Pay Off Debt Fast
There are ways to get out of debt on a low income. You can get out of debt with no extra money available. Here’s how:
If you have a lot of debt that you are carrying over, month to month; then this will be killing you financially, particularly when you’re on a low income.
It eats away at your available cash as you have to constantly service the interest & capital repayments on those liabilities.
That is really crap, and you’ll see that each month you actually have less money than the previous month. You’ve got to get a debt management plan in place as soon as possible and pay off that debt fast.
Remember, not only is the debt making your life tough now, it’s also preventing you building significant wealth for your future.
Negotiate High Debts Down With Creditors To Get Out Of Debt Fast
The best way is to get out of debt fast is to negotiate the liabilities amount down with your creditors.
Some credit card companies and banks are very happy to do this, if they know you are in financial hardship. In fact, in many countries banks have a moral & legal obligation to assist you; once they know you are in financial hardship. So, they actually want to be seen to be assisting customers who have unsustainable credit liability levels.
Therefore, call them and ask them to reduce some of what you owe, or if that’s not an option, to reduce the interest rate you pay.
It sounds weird but it works well! I called Barclaycard in the UK and they wrote off a large chunk of interest immediately. This really helped me to get out of financial trouble fast.
Sometimes you can negotiate down even larger amounts, depending on in which country you live.
Cut The Big Bills To Reduce Debt Faster
Reducing the big expenses really helps to get out of debt fast. It helps to claw back cash you would have spent on consumables, and harnesses it for debt repayment.
Switch Your Utilities To Slash Costs
When you are seriously in debt, just making your own lunch for work and making fresh coffee yourself from scratch, is not going to reduce your liabilities enough to make huge difference on its own!
You will need to do those things too, but they aren’t enough. You need to concentrate first on the significant expenses.
Reduce Housing Costs To Get Out Of Debt Faster
There is an expense guideline that your accommodation expenses should be no more than 30% of your take home income.
Some people are renting and some people own their own home with a mortgage, so it all depends. If the expense is more than 30% it’s worth considering options to reduce this expense.
Could you get in a lodger or housemate to pay you rent; which you could offset against your mortgage or rental cost?
Or does it make more sense to rent out the home you own and move to rent in a more affordable area?
If you live in a high demand area, you could rent out your place out on Airbnb.
It is really difficult to get out of debt and start saving & investing if you’re paying 40%-50% of your income on rent.
Goodness forbid; could you move back in with your parents or family member to reduce your costs?!
Think extreme action here!
Reduce Your Interest Rate To Reduce Debts Fast
If you have high interest debts like short term loans or credit card liabilities, your interest rates may be around 29% or even higher.
It is always worth trying to refinance to consolidate your liabilities down. You might even be able to get them down to 0% if you use 0% credit card deals.
This would cut your debt repayments drastically and free up valuable cash flow; which you can use to reduce your debts faster or save.
It doesn’t even take long to do. You’ll just need 30 minutes or so to arrange this. Use credit card comparison sites to do this.
Cut Transportation Costs To Slash Expenses
Commuting to and from work each day is probably one of our biggest expenses. I’m done countries there is not a good public transport system, and when there is, it’s usually not cheap!
Could you consider car-pooling or working from home? Even just a day or two a week would make a huge difference.
Create A Side Business Or Take A Part Time Job To Reduce Liabilities
Sometimes the reason you get into debt in the first place, is because you just don’t earn enough money. A solution could be working overtime, taking a part time job, or starting a business on the side. You can then use the extra cash to be in a position to reduce your liabilities.
Don’t know where to start? Have a look at our Passive Income Ideas Strategies.
If you want more help to pay off your credit liabilities, access our complete Get Out Of Debt Plan course here.
