A low income can make you feel discouraged about ever being able to pay off your debt, but don’t give up hope so quickly. You may think that your low pay limits your ability to take actions. However, there are many ways to bring all of your balances to zero, even if you’re not making that much money or if you are living in a state with high living expenses. There are several, simple steps that anyone can take to settle debt. In the end everyone has the same options when it comes to paying off debt: budgeting, saving money, earning extra money, and/or getting some help from a debt settlement company.


The main reason that most people have debt is because they spent more money than they were bringing in with their job. Maybe you had increased spending due to circumstances out of your control, like divorce or medical issues. The bottom line is, however, that you didn’t have enough coming in to cover everything that was going out. If you continue at the same rate of spending, while now having interest to pay back too, your debt will only continue to get worse. If you ever hope to clear your debt, the first thing you need to do is to come to terms with your current financial situation. Start by adding up all of your debts; it might be painful, but you need to do it. Then, look at all of your monthly expenses. Having the numbers in front of you will help you start to see where you need to improve on spending and to also figure out how much you can allocate towards paying off your debt. For example, how much are you spending on entertainment expenses like alcohol and going out to the movies?

Once all of your expenses are totaled up, you should start to see some easy places to cut back on your spending. It is also important to know the amount of your necessary expenses. You can subtract that amount from your income, in order to figure out how much can be paid towards paying off your debt. The first step for clearing your debt is to crunch the numbers and create a budget for yourself.

pay off debt with low income

Start Saving Money

Now that you know where your money has been going, it’s time to figure out how to decrease your expenses and save some money that can be used in settling your debt.  Any discussion of ways to save money in order to settle debt usually begins with suggestions to stop buying expensive coffee, new clothing, or going out to eat.  These are all good tactics, so it’s worth mentioning them again.  Some other ideas that you can use are:

  • cancel cable and watch free shows on the internet instead;
  • cancel your landline and just use a cell phone;
  • call your service providers to see if you can negotiate a lower rate;
  • line dry your clothing;
  • grow vegetables in a garden;
  • carpool or ride a bike to work to save on commuting costs;
  • have pot-lucks at home instead of going out to dinner with friends;
  • use coupons and buy generic items;
  • do comparison shopping and use rewards programs whenever you buy anything; and
  • you can even try cutting your own hair, or start by practicing on your spouse or kids.

The good news is that saving money gets easier over time, once you change your attitude about spending.  Here are some great tips on thinking differently about money.

If you ever want to get out of debt, you need to get serious about your spending.  It doesn’t mean that you’ll never enjoy a gourmet latte again, just that you need to take a break from those types of luxuries for a while.

paying off debt with low income

Earn Extra Money

Most people think that the only way to earn more money is through their primary job, by getting a promotion or working overtime.  Those options are not available to everyone.  People assume that the only other possible way that they could make enough money to escape their debt, where living expenses are so high, is by finding a better-paying job.  What these people fail to consider is the “side hustle.”  You can earn money doing part-time work on nights and weekends, like delivering pizzas, babysitting, or walking dogs.  Also, there are ever-increasing ways to make some extra income via the internet, including taking surveys, transcription, blogging, and freelance writing.  Finally, you can always score some quick cash from selling things that you no longer need, either on eBay or at a garage sale.

By increasing your income, you should be able to get out of debt quicker, especially if you can put it towards a lump sum payment for a debt settlement program. Debt settlement programs can work with small payments made at regular intervals, but larger, lump-sum payments give negotiators more options to reach final settlements with your creditors even quicker.

All of these techniques can be really helpful in paying down debt.  They are simply not feasible for everyone.  You may have already budgeted your spending down as low as you possible.  Other responsibilities may prevent you from taking on another job.  Fortunately, there is one more way to resolve debt with a low income.

Get Some Help With Debt Negotiation

One of the other ways that you can pay off debt fast with low income, is to decrease the amount that you owe by using a debt settlement company.  It may sound too good to be true, but it is possible.  CuraDebt can settle your debt if you are behind on your payments and struggling from serious financial struggles. CuraDebt provides a free counseling session and helps you sort out all of your debts.  Then, they help figure out the approach that will work best for you.  CuraDebt uses experienced negotiators who work with your creditors to get you the best settlement possible for each of your accounts.

It is more than possible to destroy debt, even with a low income.  All you need to do is set a budget for yourself, find some ways to save money, and maybe find some ways to bring in additional income.  Finally, don’t assume you have to pay back everything you owe.  A debt settlement company like CuraDebt can fast-track your debt payoff and give you more options, even with a low income.

CuraDebt has over 15 years of proven experience in debt settlement, and we’ll help reach a solution to your debt problems so that you can live with the peace of mind you deserve. Call our expert and experienced counselors at 877-850-3328 or get a free consultation here.

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