10 Tips for Paying Off Debt with a Low Income

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Silas & Grace

Though not all of us earn six figures, it’s still possible to pay off debt even on a low income. With just some lifestyle changes and mindsets, you can get out debt and have financial freedom.

And having said that, I’ve gathered some great strategies that will motivate you to decrease your debt even when you don’t have a high paying job. These are tips and hacks that come from countless success stories of people who have to paid off debt while living on a small income. So check them out and let me know what you think!

Do a Financial Reality Check

First thing’s first, take a look at your financial situation and analyze your current financial status to know what debt strategy you should use. Write down all your debts, interest rate, terms, and available credit limit for each debt.

Consider first paying off the debt that has the highest interest rate. Pay it until it hits zero it and go onto the next until you get rid of them all.

Make a SMART Goal

SMART is an acronym that you can use as a guide towards paying off debt. To make sure your goal is clear and reachable, it should be:

  • Specific
  • Measurable
  • Achievable
  • Relevant
  • Time-bound

After reviewing your financial status, make a SMART goal on how you can pay off your debt. Choose what payment strategy to use and check it’s effectivity. Be accountable and keep in mind to stay focused and determined to achieve your goal.

Start the Right Budget

Once you already know all your expenses and how much debt you have, start creating a monthly budget. Assign each and every dollar you have to cover every category like groceries, bill payments, credit card interest, and savings.

A big portion of your budget can go to debt payment so you can hit zero faster.

Save Up by Cutting Down

Utility bills, groceries, monthly subscription, and more regular household payments can affect your income hugely. So why not try cutting the cost and using the money you can save to pay off your debt?

Buy food in bulk, especially if it’s on sale and store it in your fridge. Try cooking at home instead of eating out. Cut your subscriptions for things like gym memberships, magazines, and cable. These are just simple steps that will totally help you save more.

Find Additional Sources of Income

It’s always a good idea to have a side hustle to earn more and help pay off debts faster.

If you’re good at something, why not teach it online? Or if you’re into writing, start a blog. And the good thing about these jobs is that you can do them anywhere and anytime you want.

For more tips and advice on blogging, check out my post on how I made $19,889.04 in just one month of working online on my blog!

Trim Out Unwanted Expenses

By simply making your coffee at home and bringing a lunch to work, you can easily save money. Cut costs on unnecessary things and put that money towards paying off your debt.

The Snowball Method

Paying off your debt can be overwhelming and challenging. But not when you’re guided by the right strategy and tactics. Consider implementing the snowball method by Dave Ramsey (a financial genius) which most people use in paying off debt.

List out your debts from highest to lowest and begin to pay off the lowest first while paying only the minimums for the rest. Psychologically, this works because it gets you excited when you start having small wins (by paying off the small debts), and gets your in the right gear for paying off the bigger ones later.

Make an Emergency Fund to Stay Out of Debt

Just because you’re paying off debt doesn’t mean you should’t have an emergency fund. Having money set back can keep you from going even further into debt (because you’re going to be using credit cards when an actual emergency pops up).

Stop the Debt Cycle

Lastly, choose to break down the debt cycle and open your life up to opportunities. Stop creating debts and learn to spend less than you make. The money that you can save can be used towards your financial freedom.


Who say’s just because you’re earning a low income means you can’t pay off debt? It may not happen overnight, but when you stick to it, you can become debt free altogether. So try them out and let me know how they help you!

Now, if you have any questions about this post, let me know in the comments down below! I’d love to help you out!

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Chasing Foxes was started in 2016 as a way for Grace and her husband, Silas, to start traveling. However, they started to realize that they had a passion for improving themselves, and wanted to help others level up their lives as well. So whether it's with cooking, travel, or staying healthy, they want to help you better your life bit by bit, as they do the same.

Managing Finances Money

Silas & Grace

Chasing Foxes was started in 2016 as a way for Grace and her husband, Silas, to start traveling. However, they started to realize that they had a passion for improving themselves, and wanted to help others level up their lives as well. So whether it's with cooking, travel, or staying healthy, they want to help you better your life bit by bit, as they do the same.

2 thoughts on “10 Tips for Paying Off Debt with a Low Income”

  1. I agree with the snowball method. it is the small wins that ultimately lead to bigger ones. You don’t have to earn a six-figure salary to repay all your debts. It is the small savings that help make the difference.

    Reply
  2. Let me share my story with you all, I was in a great debt after I lost my job, I had about $30k bank debt, and I could not pay back. So while reading a finance blog, I saw a comment about someone talking about how he got western union MTCN of $7,000 several times from deepwebservice01 AT gmail DOT com, I emailed them, and placed order for $5000, and I picked it up successfully in my name without any traces. I continued working with them until I moved to the richest neighborhood in my city. They also help with carding,paypal hacks, credit repairs

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