Debt is an overwhelming burden that can feel like it will be around forever, especially when your income is low. Worrying about debt takes its toll on your mental health, which can lead to a terrible quality of life. And waking up every morning feels like you are going to work to pay off creditors. By following the simple guidelines below, you will learn how to pay off debt fast with a low income.
Men who get out of debt are disciplined and completely focused on paying off their loans. That requires sacrifice, but not having financial chains wrapped around you is liberating. It provides you with freedom and enables you to start building wealth.
Imagine going to work to increase your bank balance instead of feeling like you’re a slave to the borrower!
How to Pay Off Debt Fast with Low Income
Paying off debt fast requires the right attitude. You need to believe that you can accomplish it because other men in similar situations to yours have done it.
Ensuring that you’re in a positive mindset makes the below guidelines meaningful and may make you feel excited because you’re moving toward being debt free.
Compile a necessities-only budget
You need to live on the bare minimum to get out of debt fast. A necessities-only budget means spending money only on expenses crucial to survival.
Break down your expenses into categories and ensure that you include the correct amounts. Scrutinize every expense and determine how you can reduce it. Almost all expenses can be reduced. You can buy pasta instead of steak, live in a smaller place and opt for a cheaper vehicle.
Your budget cannot consist of eating out, going to the movies, and subscriptions. You cannot afford that luxury. Sacrificing these luxuries is only for the duration of your debt. Once you’re debt-free, you can adjust your budget to include certain treats.
Buying a new phone, going on vacations, and shopping for clothes are out of the question. The goal of your budget is to spend money on bare necessities so that you have more money for paying your debt.
After inputting your income and subtracting the vital expenses, you’ll be left with an amount that should be dedicated to debt and an emergency fund. Keep in mind that while it may feel like a huge sacrifice to let go of these little luxuries, being debt-free has a huge positive psychological effect that’s worth more than the latest phone model or designer shirt.
Unforeseen expenses happen when you don’t plan for them. You need an emergency fund to ensure you’re covered for a flat tire, leaking pipes and other casualties. You can learn more about this in our article about financial wellness.
The emergency fund should be a minimum of $500 but ideally $2,000 to ensure you’re covered for most emergencies. Opting for the low range means you should have that money within a month, and the maximum amount can be funded over two months.
After you’ve fully funded the emergency account, you need to channel the excess money toward the debt.
Compile a list of your debts
Tackling your debt is best approached by choosing the easiest path. That requires compiling a list of your debts from smallest to largest. Your total debt amount may be large and seem intimidating. But when broken down into individual debts, it seems less challenging to conquer one at a time.
If you start with the smallest debt and pay it off quickly, that builds momentum and serves as motivation to tackle the second lowest debt. Once you’ve paid off the smallest debt, you have more money to direct toward the next debt on the list.
Ensure that you’re making payments on all the debts so that you don’t fall behind, but spare cash should be for the lowest debt.
Make more money
Now that you’re living a minimalist lifestyle and have an emergency account while tackling each debt, you need to increase the debt repayments.
Finding a part-time job should be your focus, but you need an immediate solution. That means selling your stuff. The necessities-only budget reduced your monthly expenses, but selling your non-essential items will put cash into your wallet fast.
Enter every room of your house and look at each item. Ask yourself, “Do I need this anymore? When was the last time I used it, and will it be so terrible if I got rid of it?”
You may have clothes you haven’t worn in a while or don’t need ten pairs of jeans. You may even have some high-quality trinkets that people will grab on Facebook Marketplace!
Make a list of all the items you can sell, such as a video game console, tools you don’t need, and pots you haven’t used in a long time. List the items on advertisement websites and hold a garage sale. The sooner the items are sold, the faster you can pay the debt.
Stop taking out debt
You won’t get yourself out of a hole by digging a deeper one. Do not take out any more debt. That includes phone contracts, gym membership contracts, and any other method that makes you indebted.
Don’t borrow money from relatives or friends either. Not only are you delaying being debt-free, but you could default and ruin relationships.
Stay away from “get out of debt fast” schemes
In your journey to expedite paying your debts, you may be tempted to opt for methods such as debt consolidation or a home equity line of credit (HELOC). These methods may seem like a good idea, but they delay the debt-free destination.
Consolidating your debts can result in paying a high interest and a long payment term. Choosing HELOC means borrowing against your home’s equity to pay off debt. That produces more debt and reduces the amount you own in your home.
How to Pay Off Debt Fast and Still Have Amazing Dates
Paying off debt fast doesn’t mean you need to neglect your dating life because you’re on a tight budget. It’s possible to have a good time on a date without spending a lot of money.
Meeting place
You don’t have to pay a hefty entrance fee to a nightclub to meet beautiful women. Visit a park, a shopping center, an art museum, or a coffee shop. Beautiful women congregate at these places all the time.
If you live in one of the main metropolitan areas, you’ll see lots of women walking around. You can go to bookstores to meet intelligent women. College campuses are another great location to meet young, attractive women. Intelligent women visit bookshops.
Knowing how to approach a woman increases your chances of success in these avenues. If walking up to a stranger intimidates you, opt for the best dating apps that actually work.
The date
Considering you’re on a tight budget, fancy dinners are not an option. Besides, planning for an amazing first date is an opportunity to find out if you like her. Why spend extravagant amounts on somebody you might not want to see again?
By opting for an affordable date, you avoid getting into a relationship with a gold digger. If she’s interested in getting to know you, enjoying an ice cream on a park bench with you will be enough for her. You can take her to a karaoke night or go for a hike.
Walking along the beach and watching the sunset together is romantic. Take a drive up to a mountain and enjoy the sights. Visit a flower garden or pick up a coffee and walk around town while chatting.
If she’s comfortable with visiting your place, you can cook dinner for her. The two of you can watch movies and play board games. These are just some of the best first date ideas that won’t break the bank.
Final Thoughts
Knowing how to get out of debt on a low income is empowering, but knowledge is valuable only if you put it into action.
Debt affects your mental health and your dating life. Studies have proven that reducing debt improves psychological functioning and spurs better decision-making.
Remove debt from your life permanently so that you can enjoy financial freedom and are capable of treating a special woman to an extravagant experience occasionally.
Now that you know how to pay off debt fast with a low income, start right now. Delaying the process is likely to result in never starting it.
