A common problem faced by many of us who are now considered low income earners is how to pay off their current debts on their current income. While the task may seem too tough to accomplish, 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 total up all your debt.

You need to know what your debt is in order to get out of debt or should I say you need to know how much you owe. Make a list of all the people or places you owe money too and the amount you owe, also make a note on what needs to be 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 don’t have a lot of money to pay off your debts, selling some items you own can make some extra money. Search through your attic, your house and garage for items that you either don’t need or use anymore and have a garage sale. Selling online is another way, there are now many sites where you can find buyers all over the world. Bear in mind you do pay to list on this site and then pay a percentage of the sale price as well. Always add at least part of the shipping cost to the item to make the item appear more attractive to buyers.

You can then use this money 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.

Getting a second job at night or delivering newspapers can bring in extra cash. Selling Avon and Tupperware can bring a good second income if you like to sell, but they do require an upfront start up cost. Use some of your skills to see how you can turn a profit by what you already know how to do. 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.