How to Get Out of Debt on A Low Income

Written By Emma Frost

Published on January 29, 2021

Figuring out how to get out of debt on a low income is difficult for anyone, but no matter how hopeless your situation may seem, always remember that there’s always a way out.

Here are some ideas on how to get out of debt on a low income.

Debt Relief on A Low Income

Calculate Your Total Debt

When it comes to freeing yourself from financial debt, take the first step and calculate your total debt. Whether you write it down on paper or type it into a spreadsheet, just be sure to leave nothing out. Be honest with yourself. It is crucial when finding out how to get out of debt on a low income.

This step is probably the most important. It helps you to understand where you are. Once you know your starting point, it becomes much easier to understand where you need to be.

A challenge is much more manageable when you’re fully aware of what you’re up against.

Avoid Any New Debt

Next, you’ll want to ‘stop the bleeding’, so to speak. For many people, debt is a normal part of everyday life. So, learning to avoid taking on new debt can seem overwhelming at first. Try your best to stop relying on debt, but don’t get discouraged if you find it difficult.

Remember: this is a long-term process, and progress will be gradual, but should be considered a win, no matter how small.

Take on A Side Hustle

Suppose you already have a full-time job, but still wondering how to get out of debt on a low income. Well, getting out of debt on a small income may require you to take on a side hustle of some kind. That means making money on the side using a skill, talent, or interest that you may have.

In this day and age, there are plenty of ways to run a side hustle online from the comfort of your home. You could sell your skills as freelancer or you could become a virtual assistant.

If freelancing isn’t your thing, you could work for your neighbors or nearby businesses. For instance, people who own lawn mowers may offer to cut their neighbors’ grass for some extra money. Or you could use your car to drive for a ride-share service or even deliver pizzas for your local pizza joint. The side hustle possibilities you can choose from are endless.

The extra money you get from a side hustle can put a huge dent in your debt and help to pay it down sooner rather than later.

Consolidate Your Debts

In many cases, people struggle with multiple debts at the same time. Often stressing over how to get out of debt on a low income. A large debt like a home mortgage, plus a few smaller ones like unpaid credit cards can really be a burden on your finances.

One popular debt management strategy is to consolidate those debts. Consolidating means to take another loan to pay off several smaller ones. That way, you have fewer debts and sometimes smaller payments. So, instead of spreading yourself thin trying to pay off several debts, you consolidate them into one debt and focus on just paying one.

One of the fastest and most convenient ways of doing that is by getting a title loan.

car title loans az

What Are Title Loans?

Title loans allow you to borrow money quickly and easily by using your car’s title as collateral to secure the loan. In as little as 30 minutes, you could secure a title loan for as much as $15,000.

That money can help you consolidate your debt by paying off your other smaller loans.

What Are the Benefits of Title Loans?

There are plenty of ways to borrow money, but few are as convenient and straightforward as title loans. Here are some of the benefits that make title loans such a popular option for people wondering how to get out of debt on a low income.

Your credit score doesn’t matter; good, bad, or none at all, lenders like Southwest Title Loans will still work with you.
The quick application process can take as little as 30 minutes, unlike the days or weeks you may need for a conventional bank loan.
There’s minimal paperwork involved. All you’ll need to get started is your driver’s license or state-issued ID, and a lien-free title to your car.
As long as you are making payments, you can still use the car like usual, so there will be no disruption to your daily life.

How Do I Get A Title Loan?

Here’s what you’ll need to do to get a title loan when you want to know how to get out of debt on a low income.

Fill out an online form at SouthwestTitleLoans.com or call them directly. Your information will be forwarded securely to your preferred location
Meet a representative at a Southwest Title Loans location you’ve chosen with your car for inspection
Have a conversation with the representative about details that weren’t captured by the information provided on form. That might include things like your address, employment details, as well as specifics about your car and how much money you’d like to borrow.
Wait for the loan approval to get your car title loan money.

Questioning how to get out of debt on a low income may seem overwhelming at first. But remember; plenty of people have done it before you, you’re not alone on this journey. Take the right steps needed to achieve the debt-free life that you want with a fast cash Arizona title loan.

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.