Debt Pay-Off Plan on a Low Income
Acknowledge that you are in debt
Create a game plan
Stop creating more debt
Earn extra income
Celebrate your achievements along the way while focusing on the ultimate goal. It’s perfectly fine to treat yourself to a reasonable shopping trip as you pay down debt. This will help you Stay Positive as this process can be draining. Do not overspend at this point because you still have those ultimate goals to focus on. As debt slowly melts away, your budget can be slightly more open and you can save more. Stay in budget at all times so that debt accumulation doesn’t occur again.
Emergencies in life will happen so be prepared with a savings fund. Set aside any bonuses or income-tax returns, and they can be your emergency fund whenever an issue arises. By relying on your own savings, there’s no need to take out expensive loans or use credit cards. Living debt free reduces the stress in your life so that you can enjoy it to the fullest.