By Corrie C This post may contain affiliate links. See disclosure policy linked in my footer.
You may think that your low household income will prevent you from getting out of debt. It can seem impossible to pay all your bills and ever make headway. The good news is there are ways to finally climb that mountain and get out of debt once and for all. Let's take a closer look at how to get out of debt on a low income.
Stop Using Credit
This may seem obvious, but every time you charge something, you're making it that much harder to get out of debt. It doesn't matter if it's something small or you have a special promotional offer. Do whatever it takes to stop using credit, whether it means you have to cut up your cards and throw them away.
Cut Expenses
The money to get out of debt has to come from somewhere. In some cases, people are using credit to cover their monthly bills. This is when it's time to cut expenses. There are things that every family pays for and doesn't need. It might be junk food, a new handbag, satellite service, etc. Track your expenses for at least one month and write down every penny spent. Look over your expenses and see what unnecessary expenses can go or be reduced.
Call Your Creditors
If you've made your payments on time and have been with the company for quite some time, they may be willing to lower your interest rate. Call and point out the fact that you have always made your payments on time and how long you've been with the company. If you only get a tiny reduction in your interest rate, ask to speak to a manager. Do this for every single card. Lowering your interest rates can make a huge difference.
Pay More Than the Minimum
You should be paying more than minimum on each debt. If you only pay the minimum, you risk never being able to get out of debt. Try to pay twice what the minimum payment is each month. You should also pick one debt that you want to pay off first and put any extra money towards that debt. When that debt is paid off, move on to the next debt and so on and so on.
Get a Second Job {or Start a Side Business}
If you have a problem with not enough income, one way to get more money to pay off your debt is to get a second job or start a side business. It may be a pain and you may be really tired from working all the time, but the short term pain is worth it if you can get out of debt!
A low income doesn't mean you have to stay in debt. What it does mean is having to truly think about what you're spending money on and what expenses can be cut to give you the money you need to get out of debt. Above all else, though. You MUST stop using credit until you're out of debt. Even then, you must use it wisely.
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- 8 Tricks to Save Money on School Supplies
- How to Live Below Your Means {without feeling deprived}
Reader Interactions
Comments
Missy Jo
I am in the process of doing exactly what you talk about in your post and get out of debt...finally! I think the biggest thing is changing my mindset. Thank you for sharing...there are so many people who need this!
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Nomerian
I was hoping to find something new and usable in this post. However, nothing new have I gleaned from here. My husband and I have 5 children (ages 8 and under.) Last year he made $24,900. We have a mortgage and roughly $43,000 in credit card debt. We don't have TV's, cable, we have basic talk and text cell phone service, we don't own jewelry, don't have high priced items or electronics/game consoles etc. lying around the house. My laptop is older than my firstborn. My cell phone, brand new, cost me $60 and my husband's phone cost $30. I drive a '97 Suburban that we bought from the junk yard and my dad fixed up. My husband drives a '99 Camry with almost 400K miles on it that has been totaled/rebuilt twice now (once I wrecked it and once my husband hit a deer.) My husband's work schedule is so random and inconsistent that he would have no consistent hours to offer another employer. He has worked in retail all his life and doesn't really have any skills to offer anyone. After the kids go to bed I sell things on ebay into the wee hours of the morning which helps to keep our checking account afloat sometimes (when I have the energy to.) We live in a rural area, 30 to 40 miles one-way from any major city, and I homeschool my children. My husband is rather discouraged with searching for new jobs as none have connected with him for years now and he doesn't even apply or search anymore. After I read most of the blogs these days of how much money a family makes and they survive on one income, blah, blah, blah, I roll my eyes and rub my thumb and pointer finger together for the world's smallest violin.
Is there anyone out there that makes as much as our household does with as many people in their household that has gotten out of debt and lives to tell of it? I'd certainly take their advice. Otherwise, quit your whining people.Reply
Corrie C
That sounds so frustrating and like you'll never get ahead! Hopefully your husband will be able to find another job that works for him (and earns more income). Since he's unable to get a second job (based on his inconsistent hours), maybe a side gig would work for you or him that has flexible hours? It certainly sounds like there's nothing more to cut.
Two good books that you hopefully check out from your local library include, Money Making Mom (by Crystal Paine) and Christy Wright has a new book coming out in April called, Business Boutique.
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