5 Ways To Get Out of Debt If You Earn a Small Income

5 Ways To Get Out of Debt If You Earn a Small Income

Thursday, February 23, 2017 10:24 am

A sad man

By Adeniyi Ogunfowoke

There’s a very high possibility that if you are earning a small income, you will borrow money to sustain yourself. It does not have to be this way because being in debt can be very stressful and frustrating especially if you earn a small income.

As a result, instead of planning how to improve your life with your hard earned money, you are making arrangements to settle your debts. This is why it is mandatory for you get out of debt and halt this monthly trend. Jumia Travel, the online travel agency shares five ways to get out of debt on a small budget or slim income.

Commit to stop borrowing

If you are serious about getting out of debt, you should commit to stop borrowing no matter the amount you earn. This will no doubt end your indebtedness. The truth is if you continue your lifestyle that leads to your indebtedness, you will continue to borrow money and service debts monthly.

Make a payment plan

Making a payment plan to settle your debts is like making a resolution. You have to write it down and ensure that you stick to it. The plan should be all-encompassing to include what you spending your money on and the percentage you intend paying to service your debt monthly.

Change your spending habit

Your spending habit is a key reason why you are always in debt or may be unable to settle your debts. If you spend more even after settling your debt, you will keep borrowing money and you before you know, you are a chronic debtor.

Work hard to earn more money

If you are not ready to squeeze yourself to settle your debt with your small income, you should be willing to get a side hustle to cushion the effect of your indebtedness.

Set up automatic deductions

As far as you are humans, you are susceptible to procrastination. It follows that it is possible that you may not stick to your budget or change your lifestyle. Then the best option for you is to request your boss or bank to make the deductions and pay your creditor at the end of the month. The balance will be paid to you.

Adeniyi OGUNFOWOKE, PR Associate @ Jumia Travel.

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