How to Get Out of Debt When You Are Broke

Many people have found out the hard way that it's all too easy to rack up huge amounts of credit card debt but much harder to pay it all off. The problem becomes especially difficult if you suddenly find yourself in a situation where you have very little income to make payments. If you are willing to make some serious sacrifices and work hard to pay your bills you can get out of debt even if you are totally broke.

Examine your current finances carefully and break down your expenses into categories such as absolute necessities like rent or car insurance, important items like groceries and gas, and frivolous expenses like dining out or buying new movies.

Cut off any expenses that are not completely essential and drop the cost of important expenses such as groceries by planning out meals ahead of time and looking for coupons in newspapers or online. Drop any monthly payments for entertainment-related products or services that do not go towards bill payments. Consider trading in your car for an older model so that your insurance payments will go down.

Find a way to increase your income so that you can make larger payments on your debts. Consider donating blood or blood plasma, selling things you no longer need on an auction site like eBay or taking on a secondary job that allows you to work extra hours each week.

Examine your debts and find the one that has the highest interest rate and/or largest amount still due. Funnel most of your excess money into making as large a payment as possible for that debt each month. Make sure that you are paying significantly more than the minimum payment due so that you pay not only on the interest but also the principal.

Contact friends or family to see if they can loan or give you money to pay off your main debts and then pay them back over a longer period of time.


  • If you are having money problems but need to purchase new clothes, furniture or appliances you may want to consider saving money by purchasing second hand at a thrift store like Salvation Army or Goodwill. Some churches and non-profit organizations will donate meals, babysitters or even money to people who are in dire financial straits.