6 Tips to Pay Off Debt Faster When You’re Living Paycheck to Paycheck


Living paycheck to paycheck can be highly stressful. Unfortunately, many Americans find themselves in this situation. If you’re working hard to pay down debt, you may wonder how to achieve your goals while in your current financial situation. The following tips may help you pay off debt faster while living paycheck to paycheck.

1. Don’t wait to start

Many people delay addressing their debt problems because they assume they’re too broke to make changes. But ignoring your debt and missing payments entirely will cost you additional fees and interest. Plus, it can also negatively impact your credit and worsen your current financial situation. Don’t wait to tackle your debt, even if money is tight. Every little bit helps.

2. Prioritize tackling higher-interest debt

When you have limited extra funds to pay off debt, it can be beneficial to focus on paying off higher-interest debt first. This debt payoff strategy is known as the debt avalanche method. When you prioritize paying off higher-interest debt, you’ll pay less in interest and can get out of debt sooner.

3. Follow a budget

Many people are scared of the word budget, but budgeting doesn’t have to be complicated. Low-cost and free budgeting apps can help you set spending limits and easily follow a budget. You may be able to free up a few extra dollars each month by monitoring your spending and rethinking your purchase decisions.

4. Increase your income

It can be beneficial to increase your income while paying down debt. Your current paycheck-to-paycheck job may only allow you to put a small portion of your income into debt. But if you have extra time in your schedule and can work more, you could bring in additional income to put more money towards debt and pay off your debt faster. Getting a part-time gig or a side hustle could help you boost your income. Here are four high-paying side hustles to consider in 2023.

5. Negotiate your bills

If you’re living paycheck to paycheck, it’s worthwhile to see if you can reduce some of your monthly expenses to free up extra cash. Many people successfully negotiate some of their bills like their home internet bill, cell phone service bill, or cable package. While there’s no guarantee that you can get a lower rate, it’s always worth asking.

6. Consider alternative living arrangements

If you have minimal extra funds to work with, you may want to consider alternative living arrangements. If you’re paying expensive rental costs on your own, you’ll have less money to put toward debt payoff. Getting a roommate or moving in with a friend or family member could help you significantly reduce your monthly expenses.

Your current situation doesn’t have to be forever

If you’re living paycheck to paycheck, you’re likely feeling a lot of added stress. Don’t let your anxiety keep you from making changes. Even small changes can make a difference. While you may be in a difficult financial situation now, it doesn’t have to be forever. Hold onto the hope that your future can look much different as you make changes and learn more.


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