How to Get Out of Debt if You Don't Have a Lot of Income

The goal to eliminate debt shows a measure of responsibility. High debts can take your extra income and lower your credit score. And once you have a low credit score, it becomes difficult to get a mortgage and auto loan. Many people have successfully eliminated their debts. However, getting out of debt is harder if you do not have extra income. Rather than live with debt, consider ways to get out of debt without a lot of money.

Instructions

1

Ask creditors to drop your interest rate on credit cards. Review your present interest rate on your credit cards, and then call each creditor and ask for a rate reduction. Prepare to negotiate, especially if you have a good payment history and are a long-term customer. Mention this to the representative. A lower rate helps you get out of debt because you'll pay less interest each month and creditors apply a greater percentage of payments to the principal.

2

Use tax returns. Rather than waste large tax returns and employment bonuses on vacation and shopping, use this income to pay down debts.

3

Eliminate extra services. Learn to live without certain luxuries or services like premium cable, DVD movie subscription or the best Internet service. Downgrade and only spend money on essentials (housing, transportation, utilities and groceries). Stay away from retail stores and prepare meals at home to save money.

4

Put away credit cards. Banish credit card use to avoid accumulating additional debt while trying to eliminate outstanding balances.

5

Sell something and use the money to pay off debt. Go through your house and look for items to sell at yard sales or place on online auction sites. Old electronics, jewelry, clothing and furniture are suitable options.