How to cope with debt on a low income
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coping with debt

You don’t have to make a lot of money to start getting your debt re-payments under control.

Here’s how:

  • Do the math. How much debt do you really have?
  • Write a list of things you’re willing to give up and start keeping track of every cent you spend
  • Increase the amount you repay on your debt each month if you can.
  • Start an emergency fund. Putting a little away often can soon build up.
  • Deal with your money triggers and stay positive!
  • Ask the experts for help

Work out a minimum needs budget

Start by working out how much you need for day-to-day living. Look at your biggest expenses first like your housing, car (transport) and food. Once you’ve identified these, see if there are any ways that you can cut back.   For example:

  • Get a house mate to help with rental costs.
  • Downgrade your car to a more affordable option.
  • Cut down on food costs and take advantage of daily/weekly deals.

Make more max payments

When you only make minimum payments, like on credit cards – you end up paying very little towards the balance because most of your payment is actually just paying the interest incurred. Get the interest rate lower by making more maximum payments and you’ll start seeing the dent in your debt!

Start saving 

Huh?! This might seem weird but it’s highly achievable if you plan ahead. When you get paid, take out a small amount and put it in savings. This will help to build an emergency fund in case you ever need it. (Plus, it stops you from reaching out for that credit card that you’re paying off!)

Find your money triggers

Do you have any triggers that make you spend money? Perhaps you get bored and end up shopping up a storm? The key to being debt-free is figuring out what triggers you to spend, and knowing how to respond to it.

Tell yourself “I can do this”

We all know that paying off debt is difficult, but it makes it even more challenging when you don’t believe that you’ll come out of this journey with more financial freedom. Figuring out how to pay off debt on a small income is just the start, but staying positive will help you achieve your goal!

Ask the experts for help

Chat to the team at Meerkat!

We can provide immediate financial relief and protection from creditors.

We’ll also deal with all your creditors on your behalf, leaving you to focus on what matters to you most.

Together, we can do this!

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