How to Get Out of Debt with No Money

By Ashley Russell on January 22, 2012

With thousands of Americans suffering from credit card debt and other debt, there must be a way to recover. It often seems odd to many to pay to enroll in a program to get out of debt. For those interested in erasing their debt without spending money, there are many smaller, less drastic practices that can help get them out of debt. These tips will show individuals how to get out of debt with no money.

1. Make a budget. Sitting down and figuring out how much income an individual has coming in and how many expenses are fixed is an important way to getting out of debt without spending any money. This will allow individuals to accurately see how much money they can realistically set aside to pay down bills. Even if it is a slow process, paying more than the monthly minimum every month is the "fee free" way to get out of debt.

2. Start eating in. Sure going to a favorite restaurant can be delicious and fast food is easy, but these practices add up. Making a food plan, planning out grocery store visits, and sticking to it can severely cut down monthly spending. Also, individuals should avoid going shopping when they are hungry because they will be more likely to give in to high-priced junk food.

3. Cut the cable. Realistically anyone could get by for a few months or even a year without the prime cable package. Even cutting back to just a simple cell phone and internet connection will allow individuals the ability to communicate with everyone they know and still catch their favorite shows, they will just have to watch a few days later online. This can easily cut as much as a thousand dollars of bills in just a year.  Again, although that may seem insignificant when compared to the overall debt total, every little bit helps.

4. Find more money. Most Americans have storage areas full of junk they just never used. Individuals who look around for stuff to sell can often make a significant amount of money to put towards paying down their debt. It is often a good idea to also look for an odd job to pick up a little more cash to pay off debts such as picking up a part-time job, offering to do yard work for neighbors, or other small jobs.

5. Call creditors. Individuals should also see if they can get their fees and interest rates lowered. Often companies would rather see a smaller amount of interest coming in, in return for having the debt finally paid off, rather than have their client file bankruptcy. If this is not possible individuals should look into balance transfers to save on interest.

Overall it is important for individuals to evaluate their habits. Those people who eat out numerous times a week can cut back, whereas someone who does not has to look elsewhere. Individuals should first make a plan, find ways to save, try to pick up some extra money, and finally look to get lower interest rates and fees. Doing all these things will allow them to slowly but surely pay down their debt, without spending a dime.