There’s a reason why debt is always described as a mountain; that’s what it can feel like to overcome sometimes. It’s even worse if you’re living on a low income and have found the rising cost of living compounding your debt. With the right tools and the right approach though, it is possible to pull yourself out from underneath that mountain.

Disclaimer: This post is a collaboration

Start with the Small Debts

When facing multiple debts, always start by tackling the smallest ones first. This approach, often 

called the “debt snowball method,” can be particularly motivating as it allows you to see progress quickly. By paying off smaller debts first, you’re freeing up money that can then be directed towards bigger debts.

The best place to start is by making a list of all your debts in a spreadsheet and ranking them from smallest to most substantial. Direct all extra funds towards getting rid of those niggling little small debts first. Think about it like cutting off the top layer before going for the foundations. Each little debt eliminated will also give you a reason to celebrate and give you motivation to continue.

Cut Down Living Expenses

We understand it’s the little things that make life worth living but doing without them foe a few months will make you realise just how easy it is to enjoy life without those nights out and takeaways. So cut back your subscription services, cook at home more and use public transportation when possible rather than commuting.

Prioritise needs over wants, focusing on essential expenses and deferring all non-essential purchases to a time when you’re more financially comfortable. You probably won’t be able to enjoy them when you’re bubbling with debt anxiety anyway. If the saving seems small, don’t ignore it either as small savings can accumulate over time, significantly impacting your ability to crawl out from under all that debt.

Look for Extra Income

Increasing your income is another obvious strategy for paying off debt faster. Even on a low salary, finding additional income sources can provide the extra funds needed to accelerate debt repayment.

Look for freelance work, part-time jobs, or gig economy opportunities that fit your schedule and explore the concept of the side hustle.

Consider selling belongings you no longer need or use through online marketplaces like eBay and WhatNot or local consignment shops. If you’re skilled enough, you can even turn hobbies into side businesses, such as tutoring, crafting, or offering services like gardening or pet sitting.

Paying off debt on a low income requires careful planning and discipline, but it is achievable with the right strategies. All the steps above, however, can be helped along by investing in a debt consolidation loan. This will allow you to bring all your debts together into one manageable amount and simplify the process immeasurably.