4 Tips for Getting Out of Debt on a Limited Budget
We all love a great getting-out-of-debt story! They inspire us all to get off of our bums and get working to pay off whatever debt we have.
But my biggest problem is always that the debt-pay-off stories always involve someone who is making a ton of money! We’re talking people who can pay off $100,000 in debt in 2 months… you need to be making that much in 2 months to be able to afford that!
For many people, that isn’t the case. In fact, many people with significant debt who I talk to come from a place with a very small income.
It might even feel like there is no one out there who understands. It might even feel hopeless if you’re not bringing in a whole lot of money but want to get out of debt.
That’s why it is so important for you to know tips for getting out of debt on a limited budget. These tips will show you that even if you have a low income, you can still find ways to pay off your debt.
More resources to help with your debt:
- How to Get Out of Credit Card Debt Fast
- What To Do When You’ve Racked Up More Debt
- Top 10 Things I Did to Pay Off Debt in 2 Years
- Best Money Saving Apps You Need
- How to Make Saving Money Easy
- Debt Snowball vs. Avalanche
- 30+ Real Ways to Earn Money From Home
4 Tips for Getting Out of Debt on a Limited Budget
Having to repay a bank loan or serving a credit line sometimes sounds tough. Even if you have a significant monthly income, getting around it is stressful.
However, the repayment itself is almost never impossible even if you are on very tight and limited budget.
The trick is in following simple everyday steps and habits that will help you grow your savings and manage your bank accounts in the long run. Here is what you can do!
1. Plan ahead
Shopping with no clear plan can prove to be disastrous to your wallet. You don’t buy what you need to buy, but rather what you feel you need.
It’s no secret – all marketing campaigns and product placements are justified on the presumption that customers will resort to impulsive shopping. Don’t be that person!
It’s not so hard to write down a list of groceries and things you need when planning to visit the store or the local market. Deviating from the list for a small amount of stuff bought is justified, but you will never spend a buck more than you need if you begin and follow this simple practice.
Same goes for any other kind of shopping. Even if we are talking about the very rare shopping sprees here.
2. Search for better prices
You should be grateful living in the today’s world. Why? You can find anything you need in just a couple of mouse clicks. And with such fierce competition and price wars going on in every single product niche, it would be foolish of you to resort to buying the first thing you stumble upon.
Why not do a little more thorough search for your desired product? It might just happen that you’ll run into a discount to another store, or you might find a product with very similar characteristics for a much lower price.
Don’t forget to respect your money. You worked hard to earn it in the first place, didn’t you?
3. Cut bank expenses
There are so many banking services available today that it’s almost a must for anyone who is troubled with any debt or bank loan to be aware of their presence. Did you know that you can consolidate your bank loans if you have a couple of them outstanding? Did you know that you can engage in debt agreement in which you’ll settle for paying down what you can afford based on your budget and not on what you owe?
If you didn’t know this by now, make sure not to go down the road of giving all your money to interests. Always be informed of different possibilities.
4. Learn how to multiply your money
Here we come to the point where we turn our attention from merely saving money to investing it in opportunities that will make your money grow. Sometimes, when savings rates are on the low, saving your money will get you nowhere. Don’t ever forget that inflation will eat up all your money if you stick to it for too long.
Instead, think of ways to invest your money further and try to take advantage of possible financial opportunities. For you to play this game of investing, you will have to be thoroughly informed.
If you succeed to multiply your money, you will make it grow much faster and will significantly speed up the process of getting out of debt.
Related Post: How to Live on One Low Income
It is possible to get out of debt on a limited budget.
There are plenty of things that you can do to get out of debt quickly – even when you are working with a limited budget. The most important thing to remember is that progress is more important than perfection.
You will slip up and falter at some point, and that’s ok! Just no matter what, never stop moving forward. I hope that you are able to take these tips for getting out of debt on a limited budget and use them to make your very own debt-free success story!
More resources to help you save money:
- How To Save Money When You Can’t Afford It
- Fixing a Budget that Spends More Than We Make
- How to Start a Budget the Easy Painless Way
- Never Pay Full Price at Restaurants
- What Do You Do When You Get Behind on Bills
- Budgeting Books You NEED to Read
- How to Save Money When You’re Broke
- 7 Ways to Still Date Your Spouse When Money is Tight
- Money Saving Hacks from an Extreme Cheapskate
- 10 Habits of Highly Frugal People
- 20 Things Frugal People Don’t Do
- How We Lived Well on $17,000 as a Family of Four
- How to Talk With Your Husband About Money
Lucy Gibson says
Caroline, I really like your tip about writing down a list of groceries and then not deviating from it. I know that when I go shopping, I will also tend to make a few impulse buys. I also like your suggestion of shopping around to make sure you find the best price. My husband lost his job a few years ago. He has since found a new job, but his unemployment time caused us to go into debt. We’re looking into getting out of debt. We might look into some debt relief solutions to make sure we get this done as soon as possible.