3 Simple Steps to Pay Off Debt when You’re Broke

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You may have debt pay off as one of your goals this year. You’re finally going to pay it off and not look back.

There’s only one problem. You don’t make a lot of money and it feels like it’s going to take forever to pay off all that debt.

Paying off your debt is something you’ve been wanting to do for years. Maybe you have tried to get out of debt before, but it just never worked out. But, this year, you’re ready to get it done for good.

There’s only one problem. You don’t make a lot of money and it feels like it’s going to take forever to pay off all that debt.

Maybe you owe a few thousand, maybe you owe tens of thousands. And you feel like it’s taking a toll on you, your health, and your well being.

Either way, there is a method to get you out of debt. Some methods may take longer than others, but all these methods will get you moving forward in the momentum of debt pay off.

Step 1- Assess your balances

pay off debt

This is always my first step whenever I’m advising someone on how to pay off their debt. You need to know your current balances before you can come up with a game plan to pay it off.

Step 2- Stop spending

To get out of debt, you need to stop getting into debt.

Sounds simple, but I know this is challenging…especially when you barely have enough money to make ends meet. When a holiday or birthday come up, there isn’t extra money to cover those expenses, so it’s easy to reuse your credit cards.

Even though it will be a challenge, it’s crucial to stop spending on your credit cards.

Here are 4 ways to help you reduce your current expenses so you’re not living paycheck to paycheck:

2.1-Reduce your groceries

2.2-Set up a budget the right way

Budgeting is the very first step to your solid money plan. Without a budget, you don’t have a way to keep yourself on track.

A budget not only helps you control the way you spend your money, it also helps you plan for your future.

If you have trouble creating a budget that actually works, then grab the free budget cheat sheet to get your started with a perfect budget for your lifestyle.

It’s helped so many people and it will help you. Plus, it’s absolutely FREE.

2.3-Spending Freeze

spending freeze

A spending freeze is an excellent way to use what you already have on hand. It’s the method of not spending any money for a given period of time.

Start Slow

I suggest starting off at 3 days and then try a week. You’ll start to notice a drastic change in your mindset when you really commit to the challenge. You’ll become more creative and will try to find alternatives to items you would need to buy.

It’s also a great way to de-clutter your house especially your kitchen and pantry. We all do it.

We buy way too many groceries and never get around to using them. Use this time to shop around your house for things you wanted to buy.

2.4- Stop Credit Card Spending

stop credit card shopping

Make a promise to yourself that you will not spend any more money on credit cards. This change will make a huge impact on your journey to debt freedom.

You’ll start to see your credit card payments make a dent in your balance and you’ll begin to feel some relief seeing the numbers go down.

Step 3-Change your Credit Card Terms

3.1- Re-negotiate your interest rate

Did you know that you can get a rate reduction on your credit card often times just by asking?

If you pay on time and are in good standing, banks want to keep your business.

Banks know that there are outside offers competing for your business. Ones that offer promotions like balance transfers with 0% interest for year. So, you have reason to ask for a reduced rate.

3.2- Consolidate balances

Consolidating balances is what truly helped me get a hold on my debt and pay it off faster than I could have imagined.

Try to find a promotion that offers free balance transfers with 0% interest for one year (or 18 months if you can get it). This will help every dollar you pay make a difference in your balance.

Consolidating your debt by transferring all of the balances onto one card with 0% interest will help you gain control.

It will allow you to make one large payment, once a month, instead of several payments.

The amount you’ll pay will directly reduce your balance, while in the past you were paying more interest than the principal debt.

3.3- Pay more than the minimum

Let me be super honest with you. Paying the minimum will NEVER pay off the debt. Like EVER. My mom did this for years and she had almost the same balance 6 years later.

Paying the minimum payment only maintains your balance so you are in good standing with the bank. It does nothing to help you pay it off.

Banks love when you pay the minimum, because they get to collect their interest, and your debt will just keep collecting that interest.

Trust me, pay your debt with the largest payment you can afford. It will make a huge difference in the long run and will get you to debt freedom much faster.

There is Hope

I know you are struggling because you don’t have a lot of income right now. Just know that you CAN change your financial situation. Start a plan and commit to paying off your debt.

It may be a challenge at first, it will get easier as your balances reduce.

Imagine once your debt is paid off, you’ll finally stop living paycheck to paycheck.

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You’ll be able to afford things you want, without having to use credit cards to purchase them.

You’ll control your money better and you’ll alleviate so much of your worries and stress.

Becoming debt free will improve so many parts of your life and you’ll find that life gets a little easier.

I’m Here to Help


You can do this. I believe in you and your ability to get yourself out debt for good.

I’m here to give you hand and pull you up. But, the rest lays in your hands.

With dedication and commitment, you can climb out of debt and get your life back. Debt Freedom is such a wonderful thing.

Comment Below! What part of this article are you going to implement this week?

Talk to you later my frugal friend.

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15 Responses

    1. Hey Sheryl, so glad you reached out and want to make a change!! Grab the free debt cheat sheet. It will help you get started. ?

  1. I had terible time with debts before. Life is too tough. Thank you for this. It indeed help me alot along with this that i discovered resently
    bit.ly/Befreefromdebt. I pray for all of us will be free of debt!

      1. That first step is by far the hardest! I’m in the same boat… trying to really push and make serious progress on my debt this year!

  2. The very crux of your writing whilst appearing agreeable in the beginning, did not really settle well with me personally after some time. Someplace throughout the paragraphs you were able to make me a believer unfortunately just for a while. I however have got a problem with your jumps in assumptions and you would do well to help fill in those breaks. In the event you actually can accomplish that, I could certainly end up being fascinated.

  3. I haven’t seen a free transfer balance offer in years they are always 3-5% transfer fee. Can you share these free balance transfer offers?

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