Have you noticed how heavy a credit card can feel? Especially when you are not making a lot of money at all. The high interest rate and the minimum payments can typically leave you feeling hopeless: you will be repaying the debt practically forever. The truth is that everyone can at least begin to get themselves out of it—one step at a time, whatever their income level.
Gold Rate
16April 2025
If you wake up on the wrong side of the bed without much money and deal with credit card debts, there is something that you can do. This blog has some practical, real-life tips that can help you get out of debt without feeling severely burdened.
Step 1: Get Clear on What You Owe
The first step is the confrontation of numbers. Many people avoid seeing their total debts, which is very stressful; however, the only way to be able to move forward is to find out where things stand.
Write it down:
- The total balance of each credit card
- Interest rates on each
- The minimum amount payable
Step 2: Cut Unnecessary Expenses
Analyse the budget and search for those items that can easily be reduced or eliminated.
Easy cuts include:
- Subscriptions – Cancel any casual style service (such as streaming, meal kits, gym memberships) you don’t really need.
- Eating out – Home cooking is really cheap compared to takeout.
- Impulsive Shopping – Avoid being tempted to buy anything just because they are on sale.
Step 3: Pick a Debt Payoff Strategy
There are two popular ways to tackle debt:
- The Snowball Method – Pay off the smallest debt first while making minimum payments on the rest. Once that’s gone, move to the next smallest. This builds motivation as you see quick wins.
- The Avalanche Method – Focus on the debt with the highest interest rate first (while making minimum payments on the others). This saves you the most money in the long run.
Step 5: Lower Your Interest Rate
High interest makes it harder to get ahead, but there are ways to reduce it:
- Call Your Credit Card Company – Ask for a lower interest rate. It’s not guaranteed, but sometimes they’ll reduce it if you have a good payment history.
- Balance Transfer – If you qualify, you can move your balance to a 0% interest card (just be sure to pay it off before the promo period ends).
- Debt Consolidation – If you have multiple cards, a debt consolidation loan with a lower interest rate might be an option.
Step 4: Find Extra Cash
If your income is low, finding extra money can be tough—but not impossible. Here are a few ways to bring in more cash:
- Sell Stuff You Don’t Need – Clothes, electronics, furniture, anything sitting around that you don’t use.
- Side Hustles – Try online gigs like freelancing, tutoring, or selling handmade items.
- Cashback Apps & Rewards – Use cashback credit cards (responsibly) or apps that give you money back for shopping.
- Part-time Work – If possible, consider picking up a few extra hours at work or a temporary side job.
Step 6: Avoid Adding More Debt
While paying off your credit cards, the last thing you want to do is rack up more debt. Here’s how to stay on track:
- Leave Your Cards at Home – If you don’t have them with you, you won’t be tempted to use them.
- Use Cash or Debit for Everyday Spending – This helps you stay within your budget.
- Create an Emergency Fund – Even if it’s just $500, having a little savings can prevent you from relying on credit when unexpected expenses pop up.
Step 7: Stay Motivated
Paying off credit card debt on a low income takes time, but every payment gets you closer to financial freedom. Celebrate small wins—whether it’s paying off one card, reducing your balance, or just sticking to your plan for another month.
Consider:
- Track your progress with a simple chart or app.
- Find a support system—friends, family, or online groups who encourage you. Consult a financial advisor or a company for professional advice. One such beneficial organisation is FREED. They have been helping people with all sorts of financial problems.
- Reminding yourself why you’re doing this—less stress, more financial freedom, and no more high-interest payments.
Final Thoughts
Getting out of credit card debt on a low income isn’t easy, but it’s absolutely possible. The key is consistency. Even if progress feels slow, every dollar you put toward your debt is a step in the right direction.
Stick with it, and you’ll eventually break free from credit card debt for good.
