Paying off debt with less income is easier than you think. Yes, here I’m going to share a kickass strategy that will help you to get rid of your debts quickly.

The early you come out of debts the better life you can lead. I’ve seen that debts make people so stressed. People struggle to pay off debts with less income. But there are also people who have come out of debts so quickly even with less income.

So in this blog post let’s try to understand the strategy of people who have paid off their debts with less income.

Paying Off Debt with Less Income

25 TIPS for Paying Off Debt with Less Income that WORKED for Many People

I’m in my 20s and I’m enjoying a debt-free life. Debt free life is a happy life. So make sure soon you will also lead a happier life by paying off your all debts.

Let me pitch sure-shot ways that help you in paying off debt with less income.

1. Practice Zero-Sum Budgeting Way Every Month

You don’t need to worry about just hearing the word ‘budget’. Now there are many free apps to prepare a monthly budget within a few minutes easily.

Zero-sum budgeting means you should allocate your all income like expenses, bills, savings and debt pay off. You should not be left even a single dollar. You should pre-plan your budget, you should know where you will be spending each dollar.

Paying Off Debt with Less Income

2. Earn Extra Money through Multiple Sources of Income

If you are earning less income then no need to worry. You can choose multiple sources of income to increase your earning.

When you earn more money you can pay off your debt easily. Even there are many passive income ideas to earn money.

Pay Off Debt with Limited Income

3. Choose the Right Debts that you should Pay off First

If you have more than one debts then you should choose wisely which one should be paid off first. You can analyze your interest rates, and pay off expensive debts first.

Many people get confused and they make the wrong choice while paying off the debts. So choose the right one.

Paying Off Debt with Less Income

4. Know where your EVERY DOLLAR is going

Just preparing a budget will not be effective until you track your daily expenses. There are a lot of free expense tracker apps that you can use.

Even I’m using the expenses tracker app. When you know where your single penny is going you can control your cash flow.

5. Follow ‘One Debt at a Time’ rule

When it comes to paying off debt with less income choose one debt at a time. According to some surveys, it is found that this one who chooses to pay off one particular debt at a time pays off debt quickly.

This will speed up your paying off debt by at least 15% more. So don’t clutter your mind and don’t try to pay off all the debts at a time.

Tips for Paying off Debt with Less Income

6. Don’t opt for any new debts

When you are already in debts then avoid any other new debt. If you again opt for any new debts then that will be very difficult for you to live a debt-free life.

You should decide strongly that you will not opt for any debts again. Your main goal must be debt-free living.

How to Pay Off Debt With Less Income

7. Rent out your car or a part of your house

Think of renting out your car or a part of your house to earn extra dollars. Also, figure out more such opportunities where you can rent out other things also to earn more money.

Even there are online websites where people look for rental services. So list out your products there. You can also use social media or offline methods to get clients for you. When your cash inflow increases, you will be able to pay off your debts fast.

Paying Off Debt with Less Income

8. Save Money on Green Groceries

I’ve done a little bit of research about frugal times during the great depression era. I found that the kitchen garden was the trend during that phase to save money. So saving money is the key to come out of debt.

You can also grow simple plants at home like beans, tomatoes, chilly etc. All these plants require less maintenance but save a lot of money on greengrocer. Even I’ve many plants at my home and I’m saving money on greengrocers.

Paying Off Debt with Less Income

9. Learn DIY Hacks that save a ton of money

Nowadays you can learn all most anything easily on the internet. So watch YouTube videos and read free blogs online to learn DIY hacks that help you to save more money.

If you approach any plumber or electrician to fix the things at home then they will charge you a minimum of $100. So learn all these things by yourself. Do it yourself and save those bucks.

Paying Off Debt with Less Income


No matter whether you are opting for online shopping or offline shopping, there are many smart shopping hacks to save money. Until you clear your all debts you should save money here and there.

Even I use cashback websites and coupon codes to save money. So you should also follow shopping hacks to save extra.

Paying Off Debt with Less Income

11. Pay off your all the utility bills on time

Paying off debts is really important. At the same time, you don’t ignore your monthly utility bills and other bills.

Avoid paying fine on such bills by delaying your bill payments. You should look after all such things and save the date to pay bills.

Paying Off Debt with Less Income

12. Know how to negotiate with your creditors

Well, sometimes communicating with your creditors will help you a lot. So don’t hesitate to negotiate with the creditors.

Some creditors may reduce the interest rates if you negotiate with them. So give it a try.

Paying Off Debt with Less Income

13. Don’t hesitate to ask for help from your friends and family

You don’t need to burden yourself by trying to pay off all your debts alone. You should know when to reach out to your friends and relatives to seek help.

There is nothing wrong to take help to pay off your debts. When you feel you can’t get rid of your debts then make sure you take help at the right time.

Paying Off Debt with Less Income

14. Avoid COSTLY HOBBIES for a few months

Hobbies are good which makes you more creative and happy. But instead of following expensive hobbies like yacht racing, poker or ballroom dancing you can opt for the least expensive hobbies.

You can find other alternative hobbies or you can even learn new hobbies like painting or origami which are not expensive. Once you pay off your debts and your financial condition gets better then you can choose quite expensive hobbies.

Paying Off Debt with Less Income

15. Read amazing FINANCE-RELATED BOOKS to come out of debts

Books are like best friends. Even I’ve read so many money-related books that helped me to save more money and helped me to understand the basics of investments.

There are a lot of good books like Rich Dad Poor Dad, Think and Grow Rich, Learn to Earn etc. So you can read them to improve financial wisdom.

Paying Off Debt with Less Income

16. Look at your Unnecessary Expenses

There are people who subscribe to Netflix and forget about that. But every month they for subscriptions through the automatic payment system.

So you should not do like that. You should know about your unnecessary expenses and cut down such expenses immediately.

Paying Off Debt with Less Income

17. Never stick on to your old spending habits

If you are still continuing your old spending habits then now it’s time to pause them. I can understand that spending habits are just like any other habit to overcome. But you should control your spending habits.

At least you should make up your mind not to spend unnecessarily until you pay off your all debt.

Paying Off Debt with Less Salary

18. Always SHARE EXPENSES with your partner or family

Sharing expenses is the best way to reduce your financial stress. It may be paying a utility bill or grocery shopping you can always go for equal contribution with your partner of family members.

This way you can save extra money every month. This means you can pay off your debts quickly.

19. Stop impressing others by living a luxurious life

You don’t need to spend money on branded clothes or a wristwatch. Choose simple living. You don’t need to either impress your colleges or your relatives by living a luxurious life.

For now, the main goal should be clearing your debts fast.

How Can I Pay Off Debt With Less Salary

20. Choose to BE THRIFTY every day

Thrifty living helping me to lead a happy debt-free life. Frugal living does not mean cheap living or being a miser. But it’s all about living life to the fullest by being resourceful.

Frugal living helped me to save 70% of my monthly salary. You can also actually save a lot of money by being frugal and pay off your debts as soon as possible.

21. Stop spending money on your addictions

Addictions like smoking, alcohol are not only harmful to your pockets but also for your health. So now it’s time to give full stop for such addictions.

I’ve seen that when financial stress is more, people usually choose addictions to relieve stress. But this is not the right way, you will lose extra money if you spend money on such addictions.

Clear Debt with Less Income

22. Follow Easy steps to lower your housing costs

Paint the walls of your house with the help of family members. And you can handle the repair of the house by yourself instead of spending money by hiring others.

Even you can think of moving to another house that offers low rent. You don’t actually need a big house, you can choose a decent house to cut off paying extra rent.

23. Don’t miss any opportunity to save money on a daily basis

It may be buying veggies or internet bills, don’t miss any opportunities to save money. Take simple actions that will help you to save extra.

Instead of using transportation, you can choose walking. All these simple actions are effective in saving a little extra every day.

Paying Off Debt with Less Income

24. Set some rules for yourself to use CREDIT CARD

If you ask me then I suggest not using any credit cards. But if at all credit card is necessary for you then use only one. Do not have more than one credit card.

Also, you can make some rules for you that you swipe credit cards only once in a week or once in 15 days. I suggest using cash instead of credit cards. This will reduce your spending habits and you can save more money.

Paying Off Debt with Less Income

25. Be more creative with limited resources

It does not matter how much you earn money but you can always learn the art of minimalism. It may be clothing or cooking you can be more creative and you can use limited resources without wasting.

Many people paid off huge beets by practicing minimalism. So choose to be minimalist.

You Can Actually Get Out of Debt on a Low Income

Do not think that you will never get out of debt. Planning and smart moves with your money help you pay off debt with less income. Also, you should look for more money-making opportunities to earn more.

You can read the real stories of people online and understand how they have come out of debt quickly. Also, you can read more finance-related blogs that help you to improve your financial literacy.

Earning money and saving money both are equally important when it comes to paying of debt with less income.

How much time it will take to be debt-free completely with limited earning?

This depends on several factors. If you have more debts then you will need more time to pay off your debts. But you should not opt for any new debts in between.

And this depends on how much money you save every month and pay off your debt. I suggest always pay off a little more debt everything. At least pay off 15% extra. By this, you can be debt-free very soon.

So follow all these 25 tips for paying off debt with less income and lead a stress-free life. Push your limits and hustle, in upcoming days you will be free from all loans.

Hi. I’m Ankita. I’m here to help you adapt to frugality happily 🙂 I love learning new things. Nowadays I’m learning more about saving money and frugality. So on Frugal Beat together we will learn to create financial magic.

Now it’s time to walk towards financial freedom together. Reach out to me on Quora and Pinterest🙂