How to Get Out of Debt When You Have No Money

By making changes in your spending habits, you can get out of debt even when you have no extra money.

The economic credit crunch is reverberating throughout the world and unemployment rates are rising rapidly. For many individuals and families, getting out of debt has become a primary concern in regaining financial stability. But how do you get out of debt, when you have no extra money to spare in the first place? Here is an easy guide to help you spend less and earn more money so that you can gradually pay off those debts and regain a life free from creditors.

Things You'll Need

• Computer
• Internet access

Instructions

1. Make tough decisions about the expenses that you need to cut in order to pay off your debt. Look closely at your entertainment, transportation, and miscellaneous expenses to see what you can go without. A good way to determine how much you are spending is to keep track of every single expense during the course of one week. Cut out everything that is not absolutely necessary.

2. Cut the cable television and home telephone land line. You can continue to get news and information, as well as watch television shows for free online. Use cell phones with a good subscription plan for your telephone communications. Use Skype to make long distance calls for free or at a greatly reduced cost.

3. Resolve to cook and eat all of your meals at home, seven days of the week. Carefully plan cost-effective meals for the week, and shop for groceries using coupons.

4. Call your credit card companies and ask for a lower interest rate. If they are unable to lower it, transfer your balances to the card with the lowest rate.

5. Look through your home for things that you can sell on Ebay or Craigslist online. Old books, unused equipment or electronics, used clothing, and many other items that you have forgotten or tossed aside, can bring in extra cash that you can put towards debt payment.

6. Use all of the money you have saved from cutting expenses and from selling goods to gradually pay off your debt each month.

Tips & Warnings

• Reducing your debt is a slow and gradual process. Don't get frustrated -- just cut your expenses and put every penny that you have available towards reducing your debt. Use the Internet to search for extra part time jobs that you can do online on the weekends or whenever you have time. Every bit of income counts.

Resources

• Read this Article in Spanish
• Skype
• EBay
• Craigslist