Originally posted 2010-03-07 09:59:48. Republished by Blog Post Promoter

A common problem faced by low income earners is how to pay off their current debts on their current income. While the task may seem too tough, there are a number of things you can be doing to make it a whole lot easier.

The first thing you need to do is add up all your debt. In order to get out of debt, you need to know how much you owe. Make a list of your creditors and the amount you owe noting what needs to paid off first. Listing them in order of importance such as rent, food, and utilities can help you decide how to divide your payments.

If you have urgent debts that need to be met, selling off some items can relieve some pressure. In virtually every house across the country, there are goods that have not been used in years. By selling these either online or at a garage sale, you will get a short term cash injection that can be used to pay off some debts.

You might have to sell off some assets like your car or even your home. Renting can end up being cheaper in the long run as many apartments do include utilities in the rent. Selling your car can give you some cash especially if you are on a public transit line and can still easily get around. This also saves on gas and insurance costs as well as car payments. If you need a car, buy a used car and if you can, pay it off right away to avoid those monthly car payments.

It might be a good idea to look for a second job that you can work around your current employment. The best way to do this is by analyzing what skills you have and how you could best put these to use in a part time job.

One strategy is to pay off in full your smallest debts first, leaving you with more money to service the larger debts. You still need to make sure you are meeting your minimum payments on credit cards or other loans.

Finally you need to work out a budget and stick to it like glue. Having a plan is no good if it doesn’t get used. Always try to put away at least a little bit of money as savings – you never know when a rainy day fund will come in handy.

Jared Wright is the marketing manager of Clivir.com – the free learning community site. You can learn more about debt relief such as free debt consolidation services by clicking the links: http://www.clivir.com/classrooms/show/what-is-debt-consolida tion-how-does-debt-consolidation-work.html http://www.clivir.com/lessons/show/are-there-free-debt-conso lidation-services.html

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Filed under: Debt Collection Articles

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