How To Pay Debt With No Money

If you’re barely managing to pay your rent and put food on the table, chances are you’re wondering how to pay off debt with no money. While the logical answer would be to get a second job and earn more money, that’s not always a feasible choice. Other than generating extra income, your only solution is to find money you didn’t know you had.

  1. Funnel every single extra penny towards the goal to pay off your debt. Even if it’s just a few dollars saved here and there, it will add up in the end. Be consistent and try to negotiate with your lenders so you don’t keep getting fined for late payments.
  2. Pay off essential debts first. Rent or mortgage, child support, taxes and utilities (especially if there’s a chance they will be cut off) are more important. Credit card or loan payments are secondary.
  3. Cancel anything non-essential. If finding a way to pay off debt is important, then cancel your cable (or downgrade to basic service), newspaper delivery and either cell phone or home phone service (you don’t need both). Reconsider home or car repair costs. If the problem can wait, delay it and use the money instead to pay off debt.
  4. Lower your purchases. Buy less of everything and make do with things you already have. If your goal is to pay off debt with no money, you should be focusing on extreme frugality. For example, you don’t need four different cleaners for floor, tiles, kitchen and bathroom. All-purpose cleaners will work fine and you just reduced your purchases significantly. Also, take advantage of free samples and stop using paper products such as napkins and switch to cloth instead.
  5. Stop buying new. If you have no money to pay off debt, then you should also have no money to buy new clothes or appliances. If you need something, visit local thrift stores or garage sales and scout pawn shops, resale stores and flea markets.



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