How A Low Income Affects How You Pay Off Debt

It will always be difficult to wipe debit from your bank account especially if you aren’t earning enough money, this usually applies to students, unemployed individuals, those who can only work a few hours a week due to medical reasons, single mums and dads, or those who can’t seem to find a job earning a basic salary for other reasons. Don’t give up hope and get yourself in more debt, it’s wise to make a plan of action and tackle that debt as soon as possible. 

You will need to be extra good at budgeting 

Budgeting is a skill and you will only get good at it if you practice, like most things. Some people are naturally successful savers, whereas others struggle and need help with money management. There are options in emergency situations like a short term loan that can be paid back. These types of loans are only recommended if you can pay them back quickly. To be extra good at budgeting you will need to sit down and evaluate a proper plan to pay off your debt. 

It might only be possible to pay off the smaller debts

If you have a low income it will make sense to pay off your smaller debts first, whether it’s an overdraft or loan you can gradually plan to pay, every little bit helps. If you happen to get a little more money than expected in one month you should use it to pay off your debts, not buy something new. It will be worth it when you see your debt wiped, being strict with yourself is the only option if you are determined to vanish the debt. 

Instead of buying clothes, sell your clothes or check out charity shops

If you aren’t earning enough and you keep spending your money on clothes and fashion items, why not start selling old clothes you no longer wear or swap them with friends? There are lots of apps you can easily download that enable you to photograph and sell your clothes, and this is a great way to start making money while developing a hobby at the same time! You will be waving goodbye to that debt in no time. 

How to deal with paying off stubborn debt

You can look for extra sources of income and find jobs that let you still be productive, for example, if you are a student with a huge workload you can look out for jobs that will enable you to study while working. For example, why not look for an evening job in a library? You might be able to read about what you’re studying while you work. Some students enjoy babysitting as they are able to study after putting the children to bed and this job will always be evening hours. Make sure you use the extra money to pay off your debt straight away, this may feel difficult but you won’t be complaining when your minus bank account figures change to plus figures. 

It can be disheartening to get paid a low salary or measly hourly rate and not manage to budge any of your debt, but don’t let this stop you from trying. There are some ways you can make extra money and use it to pay off your debt, or simply budget much more and you will be proud of yourself when the results start showing.

Originally posted 2021-11-29 18:52:30.