Having a low income is often the reason why so many people have trouble getting out of debt. While a low income may be able to cover the minimum payments on your debt repayment, it may not be enough for additional expenses, including daily living. As much as many individuals would like to stick to their debt repayment schedule, many families just can’t make it work every month. However, there are still ways of getting out of debt even with a low income.
Your first step should be to get help from a credit counselling agency that has the resources and expertise necessary to develop a reasonable debt management plan with affordable payments that will not impair your life, trigger more debt, or overwhelm you. A credit counsellor has the objectivity required to perform a fair analysis of your spending habits and your income. They also have the ability to negotiate with your creditors decrease your interest rate, and consolidate your payments into one affordable payment.
While it is easy to adapt to a bigger income and spend more, it is really challenging to embrace the hardships of a low or reduced income and learn to live within your more modest means. Discipline is the key to getting out of debt without a pay raise or borrowing money. You just need to understand there is no way out of your situation but paying down the debt.
And you can do that with a little discipline on how you spend your money. Getting rid of expensive habits and using that money to pay down your debt will help you become debt free that much sooner. It may take some time but you will get there. So cut down on shopping at the mall, making extra trips to the grocery store, buying things you don’t need, keeping subscriptions to magazines you never read, or dining out. Also avoid using your credit cards. Implement these tips and you will be surprised at how much you can save.
You can also try negotiating with your creditors on your own.. If you don’t want to use a credit counselling agency to help you negotiate through a debt management plan , you can try to do it yourself. It doesn’t cost you anything and most creditors prefer to see you making smaller but regular payments on time rather than not making any payments at all. Depending on your negotiating skills, you can talk to your creditors and see whether they are open to negotiation and what they are offering.
Getting out of debt on a low income is a true challenge. When you need to cut down on costs with an extremely low income it may seem nearly impossible. If you set out a plan, understand your budget and how you spend money, it will help a lot in your efforts toward getting out of debt.
Are you concerned about paying off your debt with a low or reduced income? Contact Credit Counselling Services of Atlantic Canada to get started on a personalized debt management plan that fits your budget.