Paying Off Debt When the Money Isn’t There

Paying off debt is a noble cause, but how do you do it when the money just isn’t there—when you’ve squeezed every cent that you can out of your budget, and are still coming up short? It’s a tricky situation, but not an impossible one. Read on for several ways to make those debts disappear.

Question the Cost of EverythingIf you’ve gotten rid of all of the extras—cable, long distance, etc.—and still can’t find the money that you need to pay off your debts, it’s time to start questioning the price of your essentials. Sure your Internet service has a fixed price, but does that mean it can’t be brought down lower? Until you call and ask, you won’t know.

Here’s a list of other bill that might be negotiable (you can decide how essential each item is):
• Newspaper subscription rate
• Cell phone
• Home owner’s insurance
• Auto insurance
• Cable service
• Pest treatment
• Doctor’s bills (ask if they offer a discount for cash payments)
• Home repair costs
• Car repair costs

Question All of Your Purchases
If you’ve been paying off debt for long, you’ve probably already found that there are lots of things that you once thought you needed, but now no longer buy. Challenge yourself to make your list of “no longer needs” longer still, and you’ll free up more money for debt repayment.

Seek Out SubstitutionsLook around your house to see if you already own something that can stand in for what you need. Do you have shampoo samples that could be used in place of a new bottle of shampoo? Vinegar that could be used in place of a cleaner refill? Cloth napkins that could be used in place of paper napkins? Make a few substitutions, and stay out of the stores.

Erase It from Your ListStill can’t find what you need? Then, stop and ask yourself just how essential that item really is. Could you do without a new printer cartridge for a little while? Cook something else for dinner instead of running to the store for an ingredient? Borrow a tool from your neighbor instead of buying one of your own? Do without, and put more money towards your debts.

Shop Smart
Unfortunately, there are going to be times when you just can’t avoid a purchase, but that doesn’t mean you have to spend a lot to get what you need. Before you head to a retail store and pay full price for your purchase, consider any and all second-hand sources.

Here’s a list of places to consider:
• Thrift stores
• Yard sales
• Flea Markets
• Pawn Shops
• Auctions
• Barter boards
• Internet auctions
• Classifieds
• Closeout stores
• Scratch and dent stores
• Resale shops

Can’t find what you need at one of these places? Then go ahead and shop retail—but take advantage of coupons, rebates, sales and clearances. It takes money to get out of debt, and the more you save the sooner you’ll be out of debt.