How To Pay Off Debt FAST On a Low Income

The things I'm telling you is to help you try to avoid the problems and mistakes and issues that I made when I was trying to get out of debt. Paying off debt fast, it takes more than just a simple plan. It takes you being disciplined.

It takes you being committed. It takes you being focused. It takes you focusing on a strategy, not just words and talk.

It's a serious endeavor. It's not something that you can just do lightly or take lightly. Cuz if you take debt lightly, debt is going to hang around your neck for a long time.

Now, with a low income, it means you got to be ultra focused, right? Because you don't have a lot of margin for error. You don't have a lot of extra money to play around with and joke around with and have fun with and make mistakes with.

You got to be focused with the little bit of money you do have. Guys, can you really wipe out thousands of dollars worth of debt on a low income? The answer is yes.

You really can. Now, on this quick video, I'm going to show you exactly how. Now, here's the kicker, though.

You got to do a few things, right? It's going to be hard. It's going to be tough, but it's very, very possible.

I know many, many people who've done it. They paid off thousands, tens of thousands of dollars in debt and didn't make very much money, but they got focused and dedicated. So, let's just jump right into it.

The very first thing you got to do is take inventory of what you owe, right? You have to stop pushing the debt underneath the rug, right? You got to face the music.

You have to list your debts, all the things that you owe on a piece of paper. Just list them. And you can list them.

This is how I would do it. I would list them from the least I owe, the ones with the smallest balance, to the most that I owe in a straight line. Now, listen, we're talking about on this video bad debt, right?

Things that you owe money on that's going down in value, depreciating items. We're not talking about real estate, rental properties, commercial property, right? We're not talking about anything like that.

We're talking about things that you owe that are going down in value. The credit cards, the student loans, the medical bills, right? the payday loans, the the personal loans, the bank loans.

Listen, the things that are not going up in value. If it's not going up in value, that's what we're talking about on this video. So, first things first is figure out what you owe.

Now, I don't really care about the interest rate, right? Listed them from the biggest interest rate to the lowest because if you're trying to pay off debt fast, the interest rate doesn't matter as much. The interest rate is not as important, right?

Whether it's 10%, 20%, 5%, if you're going to pay it off in a year or two or three, it doesn't matter. It really doesn't matter if you save a hundred or $200 over the course of a year or two, right? So, I don't care about you listing your debts highest interest rate.

Just list them from the ones that you owe the least on to the ones that you owe the most on straight down on a piece of paper. Right? Part of the big problem is that some people, they really don't even know what they owe.

They're scared to look at it. They just know, hey, I owe some money and I'm not really sure how much. And you just have this fear of actually facing what you actually owe.

But you got to get over that, right? You got to get past that point where you don't want to look at it. Okay, those days are over because anything that you want to fix, you have to understand what the issue is.

You got to understand the problem. In other words, you can't fix a problem until you face a problem. That means you got to know what you owe.

That's the very first thing, right? If me and you were having a conversation, I say, "Well, how much debt do you have that's on depreciating things? " You ought to be able to tell me, "Okay, 40,000, 23,000, 17,000.

" You should know that off the top, right? That's the first thing you got to do if you're trying to attack this debt fast. Now, the second thing that I suggest you do is to call your creditors and see if there's any way possible that you could settle.

And when I say settle, I mean you owe $5,000 on a medical bill. Maybe if you pay in the next 3 months or so, they'll knock that down to $3,500. Sometimes, specifically medical bills, sometimes you have a old creditor that's been hanging around for a while that you can actually settle with.

for sometimes, you know, half the amount, threequarters of the amount, right? I can't say really pennies on the dollar because that's going to be hard to come by. But you got to call them.

So, first thing is list them and you have them listed. You know who they are. Then give them a call and say, "Look, can I don't have very much money.

I don't make very much money, but you know, can I actually pay uh this amount on this instead of paying that amount if I pay it at a certain time? " Sometimes your creditors, they will actually welcome that because it says, hey, we're going to get some of our money. They may not be able to get all their money, but maybe they can get some of their money.

So, it's just an option that you should consider if you have these debts laying around, right? I know it's kind of far-fetched for some creditors, but you just never know. It could be a 5minute phone call.

They could knock thousands of dollars off the debt you owe. I say it's worth a shot. If you got to spend 3 hours calling all of your creditors to see if you can negotiate a lower price or a lower amount that you owe, why not do it?

It's not going to hurt you. It's just it's just two or three hours that could save you thousands. Now, just to sort of get this out the way up front because people ask me this all the time.

Should I consolidate my debt? Listen, my opinion is you don't really need to consolidate your debt unless you are you plan on this taking out four, 5, 6, 8, 10 years? If you try to do this thing fast and you pay off this debt quick, you're just playing a shell game really with your debt, right?

You're moving it from here to here to here to here just so you can get a a quarter of a percentage off of the interest rate or half percentage off or two or 3%. Look, you're trying to do this thing fast. Again, the interest rate doesn't matter.

And so therefore, I would not consolidate in most cases. Now, if you owe $300,000 in student loan debt and you know it's going to take you about four or five years, maybe you should consolidate in that instance because the interest you save over four or five years might be significant enough to make a difference. But otherwise, for most debts, just go ahead and pay them things off and don't consolidate it, right?

Sometimes we like to kind of move things around and think we're really doing something different or special or wonderful. And not necessarily. Sometimes instead of making the thing softer and easy for you when you're trying to pay off debt, make it hard.

The harder you make it, the more desperate you get and the faster you move and the more urgency you have. So psychologically, you want to force yourself to be in a hurry to pay this off, right? You want to force yourself to do this thing fast.

And the best way to force yourself to do this thing fast is not worry about consolidating interest rates, putting this. No, just go ahead and pay it off. Get it done right.

No excuses to drag this thing out further than you have to drag it out. That's just my opinion. You got to make it hurt sometime.

If you don't make it hurt and it's too easy and you just chilling cuz you consolidated here and you move some there, you're going to be 5 years down the road, 10 years down the road, 20 and still struggling with debt. Guys, if you're getting any value from this video, do me a favor. Smash the like button and most of all share this video with someone who you know could use this valuable information.

Also, please drop me a comment below and let me know your thoughts. Now, let's get back to the video. So, now you've taken inventory of what you owe.

You know exactly what you owe. You've listed them out. You've called everybody to see if you there's a settlement amount that you could pay a little less on.

And now you have to think about how much money do you have extra every single month to actually go towards the debt? Because now you want to start paying on the debt. And you want to pay as big a chunks as possible on the debt so you can pay it off as fast as possible.

Listen, there's no uh magic formula to what I'm trying to explain to you. There's no uh uh special thing that you can invest in and do this and and try to No, you got to actually pay it off, right? And to pay it off, you got to put as much money as possible towards it.

And so that means you have to do a budget. And when you do a budget, you might have to do this for a couple of months so you can figure out how much you have. But when you do a budget, income and expenses, you need to figure out how much extra each month that you have to go towards the debt.

Right? So that's number three. Look at a budget.

Look at your budget and figure out how much you have that you can dedicate to paying off your debt every single month. For some of you, it may be $150 you have left over. For some for others, it may be $1,000 you have left over, $2,000 that you have left over every month that you can plow towards your bad debt.

And again, if you've never done a budget before, you may have to do a budget so you can figure out what this amount is. And let me say this, once you figure out that amount of money that you have left over every single month to put towards your debt, you need to now take that amount and on your next budget, maybe the second or third month, the next budget, you need to put that amount at the top of the budget, right? So just under giving and tithes and food and rent, you need to have debt payoff.

And then you need to take that amount, put it at the top of your budget, call it debt payoff, and that becomes a bill just like your lights, water, and gas, just like your car payment, just like anything else you do. It becomes a bill. And so now you have a set amount because you figured this out over a couple months how much money you have to actually put towards debt.

You take that amount and you don't just Here's what you don't do. You don't pay all your bills and then whatever's left, you pay on debt. No, I don't want you to do that.

I want you because you're trying to do this thing fast and you got to have a sense of urgency, right? You got to hurry this thing up. So, take the amount that you have left every month, put it at the top of the budget, just like a bill, and write it into your budget every single month because you're doing a budget that's zerobased.

And a zerobased budget just means you spend all your money on paper first, right? All the money you know that's coming in for income, you spend it. One of those major expenses that goes at the top with your other needs is debt payoff.

Now, the fourth thing is this. You use the debt snowball. What is the debt snowball?

The debt snowball is an easy way to pay off your debt. All you have to do with the debt snowball is take that amount that you put at the top of the budget that you have to put your towards your debts every month. You take that amount and you apply it towards your smallest debt.

Remember, you listed your debts from smallest to largest. You take that amount. Let's say that amount is $500 every month.

You take that $500 and you put it towards your smallest debt. Let's say your smallest debt is paying $100 a month on a credit card. Now you pay $600 a month on that credit card until it's paid off.

Then you take the $500 extra plus the $100 you were putting towards that first debt, $600. You take that $600 and you put it towards the second debt until the second debt is paid off. How however many months that could be, right?

And then you take all the money you was paying on debt number one, $100 a month. The money you were paying on debt number two, and plus the extra $500, whatever that roll up amount was is going to be, maybe $7, $800. You take that $7, $800, you put it towards the third debt, and you keep going down the list of all of your debts and putting all the money you have, the extra money you got at the top of your budget, plus the regular amounts you were you were actually paying on those, the monthly amount you were paying on those, debt number 1, 2, and three, and you roll it all over to the next date.

And you keep doing this until you pay all the debts off. That's the debt snowball. Right?

Now remember with the debt snowball, you're still paying the minimum on all of your debts. As you pay them off, it's pretty cut and dry, right? But it also begins to move very quickly once you get through a few of these debts.

It goes starts going fast. Next thing you know, you're putting 11200 13 $1,400 towards one debt until you pay it off. It works.

It really, really works. Now, why is it called the snowball? Just like a snowball rolls downhill and gets bigger and bigger and bigger as it picks up extra stuff, extra money in this case.

That's the same thing the debt snowball is doing. The debt snowball is giving you a faster way to get some momentum to pay off your debts. And when you start doing this thing fast, guys, interest rates doesn't matter, right?

Because you're going to be doing it. You're going to be paying $1,500, $2,000 a month towards a credit card eventually, and you're going to pay it off quick. Now during this whole process you got to be looking for extra ways to make additional money that you can put towards the debt snowball right so maybe it's a side gig a side hustle and it also means that during this time you're not spending extra money on vacations right you're not for this two or three years you're getting out of debt fast on this low income you don't have a lot of extra money to go kick it you don't have a lot of extra money to eat out all the time you don't have a lot of extra money to go do some of the leisure things you really enjoy and love doing right you just don't have $2,000 $3,000 to go hang out in Cancun.

You can do that when you finish getting out of debt fast, right? Cuz you got to be dedicated to this process. Paying off debt fast, it takes more than just a simple plan.

It takes you being disciplined. It takes you being committed. It takes you being focused.

It takes you focusing on a strategy, not just words and talk. It takes you taking and trying to get extra money to pile on top of this debt. Right?

It's a serious endeavor. It's not something that you can just do lightly or take lightly because if you take debt lightly, debt is going to hang around your neck for a long time, right? So, you got to have the mindset and you got to develop the habits along the way.

It's difficult, right? You got to have these habits that are going to get you to the next level. You can't do what you've always done with your money.

If you're trying to get out of debt fast, you got to do something different. So, you got to be determined and not be discouraged. You have to be patient.

But at the same time, while you're being patient with yourself in the process, you got to be urgent in terms of what you're doing. You got to be in a hurry to pay off debt fast. You cannot afford to be uh distracted and lolly gag and take your time.

You got to ignore what other people are doing and what other people are buying or the vacations that other people are going on. You got to sort of ignore that and have some tunnel vision so you can stay laser focused on the goal of getting out of debt fast even when you're on a low income. Now, with a low income, it means you got to be ultra focused, right?

Because you don't have a lot of margin for error. You don't have a lot of extra money to play around with and joke around with and have fun with and make mistakes with. You got to be focused with the little bit of money you do have.

But it's about a a growth mindset. It's about understanding and embracing a process, right? Self-improvement, being encouraged, being motivated, right?

Being inspired to do something different. And if you mess up, because we all mess up. It's true.

We all make mistakes when we're trying to get out of debt. Now, it took me a long time to get out of debt. Like, a long time.

The things I'm telling you is to help you try to avoid the problems and mistakes and issues that I made when I was trying to get out of debt, right? I don't want it to take you 30 years to get out of debt. I want you getting out of debt in three years.

So, don't do what I did, right? So, if you mess up, don't quit. Get back on the right path and keep going going.

Don't look back and don't wallow in your past and worry about what you did and didn't do. Learn from your mistakes. Make the adjustments and just keep moving forward.

So, it's all about behaviors if you want to get out of debt fast, especially on a low income, right? So, you're listing all your debts from smallest to largest. Smallest at the top, largest at the bottom.

And then you're doing a budget to figure out, okay, how much extra money do I have every month that I could dedicate towards this debt. Then you're taking that amount, putting at the top of your budget for the next month or month and beyond. You're putting that money at the top of the budget.

Call it debt payoff, whatever you want to call it. Put it up there next to food. At the same time, make sure that to get to that figure, you're cutting your expenses as much as possible as well, right?

And then in the process of doing the debt snowball, do what you can to boost your actual income, extra money, and take that extra money, include it in the amount that you put at the top of your budget if you have extra money or extra income. And on the way, be sure to celebrate some small wins. Man, listen, this is a process.

It's a long process. It can be stressful. It can be hard.

It can be tough. It can be difficult. But guess what?

When you pay off that first debt, maybe you take and and take yourself out to out to eat somewhere. Maybe you go to a movie. Maybe you do something special for yourself.

You know, spending a little bit of money to do something for yourself so you can celebrate these small wins because it's a small win every time you pay off a debt. It's a small win. And so if you pay off four, five, six debts, you need to be celebrating because every time you pay off a debt, you get one step out of that matrix and you also get that same step towards financial freedom, right?

Just make sure you celebrate wisely and keep your energy high. Listen, this is how you get out of debt fast. It's no special miracles.

There's no special thing to that you got to make sure you do. There's no pay off debt tomorrow special thing. It's a process and you got to buy into it and you have to focus on it, but it can be done.

It just takes strategy. So, yeah, you really can wipe out tens of thousands of dollars of debt on a low income and you can do it fast. But it's up to you, right?

You got to do it. Hey guys, do me a favor. Share this video with somebody who you know needs to hear it.

Somebody that may be in debt and wanting to get out of debt or needing to get out of debt as soon as possible because these principles actually work for anybody. whether you own a low income or not a low income. So, please share the video.

Smash that like button below and drop me a comment. Let me know if you're out of debt. How did you get out of debt?

Did you do it fast or did it take a long time? Let me know in the comment section below. Guys, if you want to be rich, you don't have to start a business.

You don't have to be an entrepreneur. Everybody doesn't want to have their own business. Totally understandable.

So, if you want to build wealth instead of starting a business, I recently did a video talking about what you can do instead of starting a business if you want to get rich. Check out that video right here. Next base.