How To Pay Off Debt When You’re Living Paycheck-to-Paycheck
It’s the end of the month and you still have the cable bill to pay. You think you have enough – as long as no surprise expenses sneak up on you. You’re tired of that dark cloud of debt hovering over you everyday, but how are you supposed to pay off debt when you’re living paycheck-to-paycheck?
The math is simple – you can either reduce your expenses to have more money available for paying off debt or make more money.
1. Cut your expenses.
Start with the low-hanging fruit. Take a look at where your money goes each month. Are there subscriptions you never use? Can you cancel cable and watch your favorite shows online? Have you tried eating out less and cooking more at home?
If you are already living on a bare bones budget, it might be time to look at the bigger expenses like housing and transportation. Can you move to a cheaper place, get a roommate, or rent out a room in your home? If you are a two-car family, could you get by with just one car until you get your debt paid off? Can you sell your car and get a cheaper (but still reliable) one?
2. Make more money.
Side hustles have become more mainstream than ever. If you have a car, can you drive for Uber, Lyft, UberEats, DoorDash, GrubHub, Instacart or other similar services?
Do you think you could negotiate a raise at work?
Do you have any skills that could translate into a side hustle? If you play tennis, you could teach tennis lessons. If you are a teacher, you could tutor after school and on weekends.
If you have absolutely no time for extra work, how about selling things for extra cash? Clothes, shoes, baby gear, sports equipment, electronics, and books are just a few ideas. Try walking around your house and see what you can find!
When I was paying off my student loans and credit card debt, I took the “cut expenses” approach. And a couple of years later when I married my husband and his 6-figure student loans, we did both – cut expenses and made more money.
Paying off debt isn’t easy, but it is so worth it. When you start to lose motivation, remember that this is just temporary. Then let your mind wander to all the wonderful things you can do once you’re debt-free!
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