How Can I Put off My Debt When I’m Broke?

Having debts can be very overwhelming, especially when you are broke. Here are nine ways you can put off your debt:
  • Come Up With A Plan

Having a plan is crucial to achieving your goal. The plan should list all your debts and the order you want to clear them. Make repaying your debt a priority. 
  • Create A Budget

Having a budget will help you:
  • See how much you can put into debt payment
  • What expenses you can reduce to be able to set off the debt
  • Be financially disciplined because there is a structure on how you are allocating your money
  • Pay your debt on time
  • Get More Income

If you can get another source of income, it would help you pay off the debt much faster and easier. For example, you can look for a second job or take up a side hustle to earn extra money.
  • Change Bad Financial Habits

Bad financial habits are the course of most debts. Some of these include; 
  • Impulse buying
  • Not having a budget
  • Living beyond your means
  • Spending money you do not have using credit cards
  • Paying more for convenience
  • Retail therapy, spending to feel better 
  • Not thinking about the future and therefore ignoring accumulating debt and having zero savings
  • Paying off a debt with another. It does not solve the problem; you will still be in debt. 
  The habits above feel good for a moment, and in the next, you cry over the accumulated debt.
  • Use Cash

Making payments by cash will save you the temptation of overspending and taking on debt. You are more cautious about how much you are spending and on what items. It is like being given a blank cheque when using a credit card. You may find yourself buying things because they are on sale or you want to try them out even when it’s not necessary.  
  • Reduce Your Expenses

As you make a budget, you will be able to trace all your expenses. Check if there are any that you can cut on to allocate more money to debt payments.  You can downsize on some things such as; gym membership and work out from home, move to a cheaper apartment, cancel your vacation, or reduce the number of take-outs. 
  • Negotiate for a lower interest rate

If your creditors are flexible, you can negotiate to get the interest rate lowered to pay off the debt faster. 
  • Stop Using Your Credit Cards

If you continue using your credit cards, you will only be introducing new debt. Budget for the money you already have until you are done paying your debt. 
  • Seek Professional Help

You can reach out to a credit repair agency to help you through the journey of paying off your debt. The agency can also negotiate the interest rate with creditors on your behalf and will likely get a better offer because of their experience.  While working with professionals, you will learn how to manage your finances better. It will help you avoid getting into debt again in the future. At Shiirs, we do this and more. Reach out to us and let us help you navigate through this sticky situation.