Are you flat broke and struggling to get out of debt? I’ve been there, and I know it feels discouraging at times.
However, when things seem pretty low, it’s a sign that this is the time to dig in. Could there be a different way to dig out of debt or generate income for the sole purpose of paying off debt?
I have a few ideas on how to dig out of debt when you’re flat broke. Here’s a few thoughts which may inspire you in this season:
How to Dig Out of Debt When You’re Flat Broke
Being broke is no fun. It’s even worse when you’re in debt and struggling to pay the bills. If you’re in this situation, here’s a few ways to dig out:
1. Revamp Your Budget
If you’re in debt, struggling to make ends meet, and on a budget, the first place to begin is your budget.
Though you’re living on a budget, it doesn’t mean that there still aren’t some things which can be reduced to help you dig out.
If you have a larger entertainment budget but are in debt, reduce this part of your budget until you dig out. This is a small sacrifice to improve your standard of living in the long run.
2. Lower Your Grocery Bills to Dig Out of Debt When You’re Flat Broke
When finances get tough, the first place I turn to cut is my grocery budget. The reason being is there are so many ways to add food to your home without adding to your grocery budget.
I start by purchasing cheaper foods. Then I create unique gardening spaces to grow my own food. I also preserve my own food and make many things from scratch.
Though this may be more time consuming, it helps me reduce the amount of money spent on groceries which is more money to help dig out of debt.
3. Participate in a Spending Freeze
If you’re flat broke and struggling with debt, it’s time to put a pause on the spending. This sounds drastic, but it doesn’t have to be as hard as it sounds.
Consider the things you truly need around your home. This would include your bills being paid, food, clothing, and anything else you must have to survive.
Everything else outside of what’s listed above, can be paused until your finances get better. During this time, embrace what’s free or very inexpensive. This could be homemade coffee drinks, walks in the park, books from the library, or time spent gardening.
4. Save Your Change to Dig Out of Debt When You’re Flat Broke
One thing we do which creates extra money (and could prove beneficial when you’re trying to dig out of debt) is save our change.
Every time we spend cash, we keep the change. Then we have a large jar where the loose change gets deposited. This is an easy savings account.
We also utilize Acorns which does the same thing only electronically. Every time we make a purchase, Acorns rounds it up to the next dollar and invests this change into stocks which can be cashed in down the road.
5. Cut the Non-Necessities from Your Budget
We’ve already discussed revamping your budget if you’re flat broke and trying to pay off debt. However, reducing an area in your budget isn’t the same thing as cutting non-necessities from the budget all together.
We all budget for things we enjoy but don’t really need. If you have some of these things in your budget, start trimming the fat.
You may not have to remove all non-necessities to create a chunk of change to place towards your debt.
6. Create a Side Hustle
When I was a stay-at-home parent and needed extra money, I started a side hustle. For me, this was, and still is, freelance writing.
There are content mills you can write for or you may be able to land a more steady gig, which is higher paying.
Other ideas for side hustles include affiliate marketing, thrifting and reselling items, selling items on Amazon, babysitting, and more.
7. Sell Things You Don’t Need
Another thing I’ve done in the past when money was short was sell books. I had old text books from my college days.
I gathered them up, checked their value on BookScouter.com, and sold them. Here’s more information about selling books online.
If you have items around your home you no longer use, consider seeing if they’re worth anything. If they are, sell them.
Be mindful of selling items online as there are many scams. Use good judgment if you decide to sell things to make money to pay off your debt.
8. Reach Out to a Legitimate Credit Counseling Agency
One of the biggest debts people carry is consumer debt. If you’re drowning in credit card debt, consider reaching out to a legitimate credit counseling agency.
Notice I said legitimate. Some agencies are loan sharks disguised as a company which cares about your financial future and peace.
If they’re making a large profit from “helping” you, they aren’t the agency to deal with. Do your research until you find companies which assist in reducing and consolidating credit card debt without placing a larger burden on you.
9. Work with Your Creditors Directly
If you’re struggling to find a legitimate credit counseling agency, work with your creditors directly. Many times if you tell them you’re facing financial hardship, they’ll place you in a program run in-house.
This varies by company, but most creditors want to get paid. Therefore, they’d rather work with you to get what regular payments they can than sell your debt for pennies on the dollar to a collection agency.
Be upfront and see if your creditors will help you reduce your payment to one you can better afford.
10. Stop Digging Deeper
The most important thing to do when trying to dig out of debt when you’re flat broke is to stop digging deeper.
It’s tempting to charge things on a credit card when you’re already struggling financially. It’s only prolonging the problem and creating a larger issue.
Instead, look at the problem at hand and keep researching solutions until you find something which works for your budget and situation. Then tackle each debt one-by-one and avoid repeating the same mistakes in the future, when possible.
These are ten ways you can work on digging out of debt when you’re flat broke. Debt is scary and struggling to pay the bills is equally intimidating.
Don’t avoid the situation or run in fear. Instead, allow these tips to inspire you to find a solution for your financial problems. Then tackle them and prepare for a much brighter future with the knowledge you’ll gain from this temporary struggle.
More on Budgeting
https://srfs.upenn.edu/financial-wellness/browse-topics/budgeting/popular-budgeting-strategies
https://www.csmd.edu/costs-aid/financial-literacy/index.html
