Dealing with Debt

How to Pay Debt Off With No Money

By Julie Jaggernath

Are you wondering how to pay debt off with no money? You might be facing a situation where your family has no money, you might have low income, or you’re just barely living pay cheque to pay cheque. Paying debt off fast might seem like the best solution, but no matter how hard you try, it’s just not realistic.

When You Can’t Pay and You’re Worried About Your Credit Rating

When you can’t make your payments, your biggest worry might be that you’re falling so far behind that your credit rating will go down. And it’s true, if you can’t make your payments, or you only make partial payments, that will be reported to the credit bureaus. But your credit rating will recover when your situation improves. Your bigger concern needs to be paying your rent or mortgage and housing-related costs (e.g. bills for electricity, gas, water, etc.), buying groceries, having money for medication and other essentials, as well as keeping gas in your car so that you can get to and from work.

Paying Debt Off With Low Income

When you have low income it can feel like the weight of the world on your shoulders when you fall behind with your bills and payments. As strange as it sounds, though, paying debt off can’t be your first concern. You should, however, take steps to ensure that you don’t incur more debt. If you’re applying for credit knowing full well that you can’t afford to repay what you borrow, it’s rare, but it has happened where creditors pursue someone for fraud.

How to Avoid Getting Further Into Debt

To avoid getting deeper into debt, outline your income and expenses. Then do your best to find a way to not spend more than you have or earn. You will have to cut a lot of things out of you budget, but it doesn’t mean it will be like this forever. By taking control of your spending and looking for ways to supplement what you have, you’ll manage through this tough time. A year from now, your situation will have hopefully improved.

Each Province Has Rules Around Debt Collection

When you can’t pay your debts, collection agents will call and send you letters demanding payment. They might even call your work. Each province has debt collection rules about what collectors can and cannot do, along with your rights and responsibilities. Inform yourself about the laws in your province by checking with your consumer protection authority or office.

There are ways to communicate effectively with creditors and collection agencies. Here is more information about the best way to get creditors to listen, including some sample letters to help you communicate more effectively.

When You Need Help to Pay Debt Off But You Don't Have Enough Money

When you have no money to pay your debts and bills, and you think declaring bankruptcy is your best option, contact us first. We’ll look at your whole situation with you and answer any questions you might have. Many people think that going bankrupt is for people who have no money – that isn’t always the case because it costs money to go bankrupt. So don’t let worries about the unknown get the better of you. Contact us now and we’ll be happy to help you.