Then take the payments you’ve sent to your microloans and add them to your next biggest loan. You may also need to agree to a court-ordered repayment schedule for some of your debts. The debt snowball method is perfect for people who need a quick profit or motivation. Credit counselors typically work as part of nonprofit organizations that help consumers create a plan for managing their money and debts.
How can I pay off low-income debts?
Make a list of all outstanding credit card statements, medical bills, loan payments, or utility bills and add up what you owe. Call a nonprofit credit counseling center like InCharge Debt Solutions and let experts guide you through the process to determine if it’s a faster and cheaper way to reduce debt. Some people pay off old credit card debts, really old ones, even if they are no longer required to do so by law.
How can I pay off debts without additional income?
An important step to getting rid of credit card debt is to stop increasing your amount of debt or at least reduce your reliance on loans. The main advantage of this method is that you not only repay your debts, but also save more money in the long term thanks to the interest that you don’t pay. Tell the creditor that you would like to repay your funds faster and would like to know what services are available to you to manage your debts.
References:
- 12 Steps To Pay Off Debt When You Live Paycheck To Paycheck – Inspired Budget
- Low Income Debt Help: Government Assistance and Resources
Barry Ritholtz is a renowned finance expert, author and blogger. With over 30 years of experience in the financial industry he has gained a reputation as a thought leader and influencer in the investment community.