How to Get Out of Debt When You Don't Earn A Lot

**Want to know how to get out of debt in a few easy steps? The key to it is to believe that you can actually live on less, get out of debt, and still be okay.**

Getting out of debt is extremely exciting and if you are anything like me, you are doing all the research you possibly can to make sure you are prepared for this long journey. As I climb my way out of debt, I’m sharing with you the top money tips that my family and I swear by.

You are going to learn all about how to get out of debt, (which is actually doable and fun!) Once you’ll get to see your debt start going down and you’ll gain momentum to continue in this debt free journey.

This post is all about how to get out of debt.

How to Get Out of Debt in 3 Easy Steps

1. How to get out of debt when you are broke:

I don’t know about you, but I let shame and guilt rob me from ever facing my finances. I knew I was deep in debt, but I was so ashamed and did not want to face it. Somehow, I felt as if I would ignore my debt, it would magically go away.

Sound familiar?

Please, stop hiding from your finances. The not knowing can be scarier than knowing.

As a result, don’t feel ashamed like me. You have to sit down and know your numbers. So figure out how much you owe. We all start from somewhere.

So, what are your numbers? Sum up all your debts. List all your credit cards, student loans, car loans, and come up with your debt number.

Oh, and FYI, my debt was over $72,000…yikes! (It was WAY more than what I earn in a year). It was very depressing (no wonder I procrastinated and ignored this number for years.) I never wanted to face it, but this is the most crucial first step to getting out of debt.

Even when you don’t earn a lot, you still need to know your numbers, so you can know where you stand financially and go from there.

And stop telling yourself you are broke because you’re already setting yourself up for financial failure. Let go of the shame and guilt around your finances and be willing to learn all you can about money.

2. How to get out of debt quickly

First, get on a written budget. Getting out of debt takes time and real effort. And if you are anything like me, when you hear the word budget, you might want to run the other way. (Especially because you’ve never budgeted before.)

The minute something starts to feel hard, or you’re not an expert at it, you just want to give up.

But, in reality a budget is just a spending plan to help you plan ahead and tell your money where to go, which is actually pretty cool.

You can get out of debt quickly the sooner you start sticking to your budget. Focus on finding room in your budget for extra debt payments.

Remember, this is a long journey and there is no overnight success. (It will take time.) When budgeting, you often take 2 steps forward, but then 1 step back. But sometimes it’s 3 steps back.

So, don’t give up! It will take time and practice to master your budget and actually get out of debt.

Think of it this way. Getting out of debt IS possible, yet it won’t happen instantly.

In the mean time, celebrate those small wins! Did you get to pay an extra $40 towards your debt this week? Congrats! Reward yourself. (There is no shame on how small your extra debt payments are.)

In reality, it’s those small extra debt payments (consistently over time) that will help you get out of debt quickly.

Getting on a written budget, will help you find those extra dollars you didn’t even know you had, so you throw them towards your debt.

{RELATED POST: How To Stick To A Budget In 3 Easy Steps}

3.How to get out of debt on a low income

Don’t just rely on your 9-5pm job to get out of debt. You need to bump up your income by picking up side hustles. With just one income coming in, it will take you an eternity to pay off your debt.

Fun fact: The average millionaire relies on 7 streams of income. They’re not like us receiving just one paycheck, they receive multiple paychecks. And so can you!

Imagine all you can do with all the extra money that comes into your bank account… You can send it straight to your debt.

There’s a ton of side hustles you can do on the side while still working full time.

Babysitting
Pet sitting
Freelance Writing
Flip Furniture
Landscaping
Teach English Online
Start a Blog
Start a Youtube channel
Deliver food

Remember, this side hustle would be temporary, just a season in your life. It’s just to help you get out of debt faster. I’m sure you can find tons of side hustle ideas on Youtube or Google.

In Conclusion…

You can get out of debt, no matter what your income is! By knowing your numbers, getting on a written budget, and picking up side hustles, you’ll make a lot of financial progress in just a few short months.

Like it or not, you are in charge of your future and your money. You can either get out of debt or stay comfortably in debt Which one will you choose?

Getting out of debt will ultimately give you financial freedom!