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7 Ways To Get Out Of Debt On a Low Income

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Asking yourself how to get out of debt when broke?

How do people get out of debt on a low income?

I know I did! It was such a stressful time for me, but the good news is that I recovered from debt and you can too.

Does this sound familiar?

Your finances are a mess, and it seems like you are drowning in debt with no hope of getting out. Your income looks like it is not enough to help you to recover from debt.

Whether you are in these financial difficulties from a loss of a job, medical situation, or lack of financial planning, you are not alone.

The good news is that you can get out of debt, regardless of your income.

You are stressing, and you had enough of your debt problem. You are ready, and committed, to change; yet you don't know where to begin. The feeling of being overwhelmed is striking you, and you don't know whether to take charge of your finances or give up.

Because your income is low, you might think that debt is part of your life. What you didn't anticipate was how stressful and terrible it feels to be in debt.

Debt knows no income; the feeling you are experiencing is shared by the majority of people who are in debt as well.

Let me be clear about one thing if you can't manage your money now, having a bigger income won't help you either. You need to learn to manage your money no matter the income.

Back to the post.

Again, debt is not forever; you can survive this financial fight and recover from debt like a champion. One thing you must learn is that getting out of debt is not a fast process, but a process that not only will change you financially but personally as well.

Your mindset will change during your debt recovery if done correctly. You will learn that sometimes the reason you are broke, is not because you are broke; it's your mindset and the way you are living.

If you are in a low-income situation and in debt, you will learn that you can make extra money and find ways to kill your debt and save. Recovering from debt requires commitment and patience. Regardless of how frustrated you are with your debt situation, remember that debt is not forever; that you will be OK.

Having a low income and debt its rough. Learn 7 ways to get out of debt on a low income and create good financial habits in the process. Getting out of debt regardless of income is possible all you need to do is follow this steps.

How To Get Out of Debt On A Low Income

Gather all of your bills

To begin attacking your debt, you will need to gather all of your bills. Write all of your bills down and how much debt you have. Again, every single bill you have needs to be written down.

Create a budget

It's time to start working on your financial blueprint; your budget. When you create a budget, you are seeing where your money is going, how you are spending it, and you will go over your income and your expenses. You will look at your categories and see where you will need to improve.

You need to make sure you have all your income and your expenses written down. Be honest and be ready to face reality. Your budget might hit you with a reality check that many people don't like to face.

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Create a plan of attack

Now that you know the amount of your debt, and you have your budget, you must have a plan and goals set.

If when creating your budget, you realized that you needed more money, or you needed to spend less (I'm sure to spend less was the case); you need to come up with a way to make more money, pay off your debt, and save money.

Your plan of attack should be a reflection of you. Once again, I will say that your financial plan is personal; you should never compare your finances with others. This could lead to disappointment and discouragement.

If you want to pay off your smaller debt first then do it or if you want to pay off the highest paying debt, that's fine. It is up to you!

You are going to create this plan of attack and you are going to make sure you follow it. For this reason, you need to break this plan into smaller ones to avoid being overwhelmed or lose motivation.

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Make extra money

Another way to get out of debt is to find ways to make extra cash.

If you need to make extra money, you could find a part-time job, start selling unwanted items, or start babysitting. Look for ways to make extra cash to help you eliminate your debt. Find what you are good at, and start selling your services.

Making money is not as hard as you might think. You can find many ways of making extra cash, like this blog. Remember that every penny counts and should be recorded on your budget.

To make extra money while we killed our debt, my husband worked part-time at a friend's diner. He also repaired home computers for extra cash.

Avoid using credit cards

If you need to cut on your spending, the best way will be to cut all your credit cards, get in a cash-only budget system to cut down on your spending.

It is time to start making sacrifices to pay off your debt. Remember that credit cards are not good for you if you can't afford to pay them in full each month.

Get rid of the credit cards until your finances are under control.

Call your credit card companies and other utility companies

You will be surprised how easy it is to call your cable company, or cell phone provider, and explain the situation to them. The majority of the time, these companies will work with you.

If you can suspend your service plan for a month or two to get your finances under control, then do it. Keep in mind that this will extend the life of your contract, if applicable.

Call your credit card company and see if they can reduce your interest. The worst thing they can say is no, so why not give it a try?

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Stay positive

No matter how terrible getting out of debt is, always remember that you will be OK. You can do it, and you will be successful.

To keep motivated, try to read motivational quotes, read frugal posts, surround yourself with people that understand and motivate you, etc. Staying positive is very important.


Getting out of debt when you are in a low-income may seem hard, but if you discipline yourself and follow these tips, you will succeed.

Remember that many others have gone through this journey and have succeeded. How you get out of debt depends solely on you and you only.

Your turn: How did you get out of debt? What helped you? When it comes to income do you think getting out debt affects the progress? Share your thoughts with us!

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  1. Great tips! We’re at the beginning of our pay down debt process (crossing our fingers the jobs stick!) I can’t wait to start paying off our debt!

    1. Good for you Lindsay! I’m excited for you. If you need any support shoot me an email! Let me know how you are doing, Lindsay.

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