Have you ever wondered how to get out of debt when you are broke and not sure when you will get money to settle your financial problems? If you have felt this way, know that you are not alone. I have many times in my life wondered how to get out of debt with no money – Is that even possible? Well, such are the kind of thoughts that play out in your mind when you are under pressure to settle your financial problems.
If you are highly indebted and have low earnings, it is normal to wonder how to get out of debt on a low income or even how to get out of debt with no money and bad credit. The truth however is that, to get anything good in life, you have to be willing to make conscious efforts to achieve your dreams.
So if your goal is to learn how to get out of debt quickly, I have the right tips you need to help you live a debt-free life. Just give me your rapt attention as I unravel these secrets that you should know.
How To Get Out Of Debt With No Money And Bad Credit
1. Render Services In Place Of Money
You can repay a debt by rendering services in place of money. For instance, Alex’s son was ill and needed money as soon as possible. The only way out was for him was to get a loan in exchange for his services. After the success of the treatment, Alex had to be a part-time driver for three months for the payment of the loan.
2. Exchanging Properties For Debt
Having a hard time paying your bills? You can exchange/give away a belonging or property equivalent to your debt to your lender. This will help you pay off your debt quickly.
3. Selling Of Belongings
You can sell some of your properties and use the money realized from sales in payment of your debt.
4. Ask Your Creditors For Lower Interest Rate
It will be hard to pay back a loan with a high interest rate. You can ask for the interest rate to be reduced in other to enable you to pay back the debt faster.
5. Request That It Is Deducted From Your Salary
If you borrowed money and you are finding it difficult to pay back. You can request that a percentage of the debt be deducted from your salary daily, weekly, monthly, or annually till it is finally paid.
6. Tackle Layer Debts
It’s easier to pay off large debts once the smaller debts have been taken care of. You can tackle large debts by paying part of the major debts to reduce the interest charges. Through this method, you’ll be able to have money left in your pocket monthly or as the case may be.
7. Try To Earn Extra Money
You need to look for ways to earn extra money to speed up the pay-up process of your debt. If you pay, for instance, $500 monthly on your bills and you can earn extra bucks, you’ll be able to speed up the payment process by either increasing the money to something like; $700 per month or more.
8. Look Into Debt Consolidation Options
This option is going to give you a monthly payment you can afford, by limiting the amount of interest you need to pay. With this option, you don’t need to bother yourself about paying too much interest. This option will reduce your monthly payment to an affordable rate and cut down the money owed in 2-4 years.
How To Get Out Of Debt Quickly
1. Cut Down On Your Expenditure
This is a unique way to pay off your dues quickly. You’ll either do it the old school way by writing down your expense plans using pen on paper or by using an online App.
2. Ignore Your Broke Friend
If you focus on your broke friends and make always helping them with your goal, it will prolong your debts and possibly increase your interest. This is because when you are always trying to solve everyone’s financial problem, your finances get to suffer and this will prolong your payments and possibly increase your interest.
3. Get A Side Gig
Getting a side hustle will enable you to pay off your loan easily and faster because you have multiple sources of income from which your needs can be met. If you are considering getting a side hustle but don’t know which to go for, or which will be suitable for you, read this article titled: 100 Best Small Business Ideas You Need To Start Now.
4. Avoid Unnecessary Expenses That Are Tempting
To get out of debt you must learn to resist the urge to buy things that you did not plan to buy or things that you don’t need.
How To Get Out Of Debt On A Low Income
1. Always Make A Budget
One way to come out of debt on a low income is to make a budget. When you use this budget as your financial guide, it will enable you to meet your monthly needs and still pay off your dues easily.
2. Don’t Take A New Debt
Try to pay off your old debt before incurring another.
3. Set Aside Money
For you not to skip payment of your outstanding debt or even add more to your outstanding debts, you need to save up some money no matter how little to clear up your debts and unexpected expenses that could come up.
4. Cut Down Your Spending
Avoid unnecessary expenses and only buy the things you need. Doing this will allow you to pay off your debt quickly.
Being in debt can be frustrating. It’s like a heavyweight on your shoulder that makes it impossible to have rest of mind. You can however be free from debt if you are contented with what you have and exercise control over yourself and your expenses.