Living life in debt is so stressful, especially on a limited income. The effects it can have on family, friendships, and your job is plain horrible. I’m going to help you fix that by giving you easy ways to pay down debt on a low income.
You’re here, which means you’ve taken the first step and acknowledged your debt.
Now, it’s time to commit to eliminating it. In order for this to work, you have to commit.
Easy Ways to Pay Down Debt on a Low Income
If you want to pay off your debt you need to know exactly how much you have.
Gather all of your statements and using this worksheet, list your debts from smallest to largest. Make sure that you’re also filling in the due date and minimum payment due.
We’re going to use the Snowball Method to knock this debt right out the dang park!
The snowball method, in a nutshell, is taking additional money and adding it to the minimum payment of the lowest debt. When this debt is paid off, add that payment to the next and keep going until all debt is finally paid off.
If you’re wondering where that extra money is going to come from, stay with me, I’ve got you.
Know Your Budget
The second step in paying down your debt is to know your budget or know the exact dollar amount you’re working with each month.
Income – Fixed Expenses – Variable Expenses = Budget
Here’s another free worksheet to make creating a budget super easy. 🙂
Now, it’s up to you to decide how much of that budget you can comfortably add to your lowest debt each month.
If you don’t think you can add any, read on.
I’m going to show you ways to increase your income from home and save more each month.
Increase Your Income From Home
There are many ways to increase your income from home. I’m only going to share the ones I’ve done myself, though, and know are entirely legitimate.
- Test Websites with User Testing. You earn $10 for each website you test, a few of those per month could put a nice dent in that debt, don’t you think?
- Sell Your Stuff on Decluttr. If you have books, game consoles, video games, cd’s, tablets or any other tech lying around, Decluttr will pay you for it. You’ll get your payment next day, and they’ll also have your stuff shipped to them for free.
- Start A Blog. While this won’t earn you money overnight, it can set you up for a great financial future. No experience? I didn’t either, but this is blog #2 for me. 🙂 Curious? I wrote an article, specifically for people interested with no experience.
- Complete Surveys in your spare time. I like to do it during commercial breaks or when I’m waiting to get the kids from school. YouGov and Swagbucks are my favorites, but others like Earning Station, Vindale Research, and MySurvey are good too as long as your super honest during your questionnaire.
- Other ways to earn from home include selling clothes that don’t fit anymore to consignment shops or in Facebook Yardsale Groups. Likewise, you could purchase clearance clothing and flip it for a profit in Facebook Yardsale groups or Ebay. How creative are you? Can you paint or create something to sell? If so, Facebook! 😉
- Take Surveys For Cash: Top 10 Sites
- 12 Things I Stopped Buying To Save Money
- Real Jobs You Can Do From Home
- Best Apps To Save on Everyday Purchases
- 5 Websites To Make Extra Cash
Pretty much everywhere you look there is a way to save more money. The more you can save the more you can put toward that first smallest debt and get the snowball rolling.
Some places to look for savings include:
- Cable/Satellite T.V. – Consider downgrading your cable or satellite package and save on average $30-50/month. Or, consider canceling it all together and going with a streaming service like HULU, Roku or Amazon Fire T.V. This option would save you even more without compromising your favorite shows.
- Cancel Gym Memberships. Doing so could save you $10-$30+ per month.
- Use Coupon Apps like Ibotta (my favorite) and Checkout 51 for grocery shopping. There’s no coupon clipping at all. With Ibotta you simply link your shopper loyalty card, select the offers you want, and make the purchase. Ibotta automatically gives you the savings, and once you hit $20, you can cash out. They also give you $10, free, just for trying it out. Checkout 51 is similar except you need to snap a photo of your receipt to get your savings.
- Ditch the landline. If you have a cell phone and get great reception in your home, a landline is, frankly, a waste of money. Consider canceling for an average savings of $25+ per month.
The key to using these found savings is to make sure you still put this money back and apply it to your debt.
- Best Apps To Save On Everyday Purchases
- The Secret To Saving At Target
- How To Save On Groceries Without Cutting Coupons
- Easiest Way To Get Free Gift Cards
Let The Snowball Roll
Now that you’ve been able to add some more money to your budget through earning more and saving more, apply it to your smallest debt first. You won’t believe how quickly it gets paid off.
After it’s paid in full, apply all of the money you were using to pay it, to the next smallest debt.
Continue on like this until you are debt free.
*If maxed out credit cards have affected your credit score, you should see an increase once the debt is paid off. Keep an eye on your credit score for free at Credit Sesame.
Congratulations! With these easy ways to pay down debt on a low income, you are well on your way to having that stress lifted from your shoulders. If you find this article as helpful as I intend it to be, pay it forward. Share on Facebook, Twitter or Pin It on Pinterest. Make it easy for others to find and get started on their debt free journey.
P.S Feel free to comment below, but be sure to keep it classy. 😉 Best Wishes!
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