Any amount of debt can be crippling if you’re trying to pay it off on a low income. Still, it is possible to be debt-free in a short amount of time if you stay focused and disciplined. Check out 7 ideas below for how to pay off debt fast with low income.
1. Analyze Your Finances
Before you can find the best ways to tackle your debt, take a good look at what’s going on with your money as it currently stands. Even if you already use a budgeting tool, there may be aspects of your finances you haven’t taken notice of yet. Make a list of all of your debts, find out the balance of all of your accounts, and take note of your current spending habits. This will allow you to make a realistic, optimized budget in the next step.
2. Made a Budget
A budget is one of the cornerstones of any good debt repayment plan. By having a plan for how you’ll spend your money, you will be able to reduce unnecessary expenses and stretch your money further than if you haphazardly spent your money every month. Set up a budget to cover your basic needs first, including rent, utilities, food, transportation, etc. Then budget in your monthly debt payment, making it as high as you can go without totally depriving yourself. Once you’ve covered your basic needs and debt, you can add in a reasonable budget for things like entertainment and travel.
3. See Where You Can Cut Back
Now that you have a budget structure set up, it’s time to re-evaluate. There are likely expenses you don’t need to be wasting money on, like eating out for lunch every day or subscribing to services you don’t really use. Make sure you stay realistic about where you’re cutting back — don’t make your budget so rigid that you can’t stick to it for more than one month.
4. Ask for a Raise
Even if you’re scrimping and saving everywhere you can, it may not be enough to pay down your debt as quickly as you’d like. In that case, it’s time to start making more money. The easiest and most efficient way to do this is to ask for a raise at work. To pull this off successfully, ask your boss what it will take to earn a raise, then make it clear you’d like to start earning at this level. Set a timeline to accomplish this goal within a few months, then schedule a talk with your boss again when you feel like you’ve done what it takes to meet those expectations.
5. Earn More Money with a Side Job
Not able to get a raise right now? Maybe you’re new at your job, you just got a raise, or maybe your company doesn’t have the funding. Whatever the case may be, there are still other ways you can bring in more money every month. Think about your hobbies and interests and see if there’s a way you can monetize them, or get a job on the weekends. No need to completely burn yourself out, but working a few extra nights a week will help you pay down your debt much faster.
6. Consolidate Your Debt
Another option for how to pay off debt fast with a low income is to consolidate your debt. This can be achieved by getting one new loan that becomes a single payment you make every month with a single interest rate, rather than paying off several different loans at once. Payday loans are one way to consolidate debt and get quick cash. You won’t have to wait weeks for the money to show up in your bank account, and there aren’t any restrictions on how you use the money.
7. Keep the Big Picture in Mind
Paying off debt is hard work. It takes patience and great discipline. If you’re implementing all of these tips to pay off debt fast with low income, be sure to keep the big picture in mind. Make a chart to track your progress, and remind yourself of how far you’ve come. Remembering your goal will allow you to stay disciplined for as long as you can until you’ve reached the finish line.
Contact Us Today
Are you ready to get a payday loan in Texas? Contact us at Power Finance Texas. We offer personal loans up to $1250, allowing you to pay down debt and get rid of those overwhelming interest rates. Get in touch today to learn how we can help you.