How Do I Get Out of Debt with No Money

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Do you struggle with bad credit and no money? If so, you could be asking yourself, “How do I get out of debt with no money?” First, analyze your finances to know how deep you are in debt.

Then, make sacrifices by living on a minimalistic budget. And, if your debt is still choking up this slim budget, reach out for external help through debt relief programs as you work on increasing your income to overcome bankruptcy completely. Indeed, we can all straighten our finances and live a debt-free life.

The Steps

1. Confirm Your Current Credit Score

Start by knowing your current credit score to know your real indebtedness. Here, check your credit reports and confirm which obligations are in your name, who you owe, how much is outstanding, and when the debts are due.

Check and monitor your credit score once a month to make informed decisions about your personal finances.

2. Track Your Spending

Do you know where your money is going? Do you use a budget when buying groceries, household items, or going out with your buddies?

Keep tabs on your cash flow to identify what you spend each month (total monthly bills, credit card deductions, interest charges) and gauge the significance of each spending in your overall life goals.

3. Come Up with a Budget

Are you living beyond your means? Assess your spending against your total income for the month. The easiest way to monitor your cash flows is by creating a personal budget.

A typical budget will show your income, expenditure, and savings.

Here are tips to come up with an effective personal budget:

  • Set a goal for the month or year.
  • Assess all your sources of income.
  • List all your monthly expenses.
  • Categorize your expenses as fixed and variable.
  • Pay yourself first.

4. Cut Your Budget to the Minimum

Reorganize your spending to allocate more money to the critical items contributing to your life goals. Likewise, identify which expenses you can do without and cut them off your budget completely.

For example, you can save thousands of dollars by removing unnecessary subscriptions, preparing meals instead of eating out, and going for cheaper insurance and housing options. That way, you operate on a slim budget until you get out of debt.

5. Consolidate Your Debts

Now that you have a minimalistic budget comprising must-have expenses, are you still choking on debt? If so, analyze your current debts and consider consolidating them.

Debt consolidation involves taking a bigger loan with an extended repayment period to refund the bad debts and other obligations with a shorter repayment period or high interest.

6. Apply for Debt Relief

What if the minimum debt payments after the consolidation are still beyond your current income? At this point, seek external help accessing a debt relief program.

A debt relief program assists by offsetting part of the debt, resulting in lower and more manageable monthly deposits.

Here is how it works:

  • The debt relief company calculates your total debt and estimates the amount of debt it can settle on your behalf.
  • The company pays this estimate to create a new monthly deposit that is less than what you would initially pay.
  • As long as you are consistent in repaying the lower monthly deposits, the debt relief company can begin negotiating with the creditor for a settlement on your behalf.

A typical credit relief program lasts for two to four years. Use them to repay your credit card loans, medical expenses, private student loans, unsecured personal loans, and peer-to-peer loans.


Then, how do I get out of debt with no money? Acknowledge that you are in debt, reorganize your finances and seek external help through avenues like debt relief programs.

Finally, find ways to make more money. You wouldn’t want to get out of one debt trap and land in another, would you?

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