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Tips to pay back your creditors and live on a small but tight budget

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By: Good Nelly
on 6th Sep,2013

The borrower has no freedom. Rather, he is the slave of the lender. They keep on borrowing money just to survive in this world.
Tips to pay back your creditors and live on a small but tight budget


You must have heard about this famous line taken from the Bible - "The rich rules over the poor, and the borrower is the SLAVE of the lender". Even if you haven't heard about it, you must have clearly understood the meaning of this line. The borrower has no freedom. Rather, he is the slave of the lender.


A huge number of people are just living on a basic survival mode. They keep on borrowing money just to survive in this world. Around 15% of the nation's population falls below the poverty line. If you belong to that 15%, then what you need is a dynamic plan to pay back your creditors. Read along the article to know how you can lead a debt free life even when your income is below the poverty level.

2 Tips that can help to repay debts and bring smile on your face


Check out the 2 tips that can help you eliminate your debts even when your monthly income is only $916 per month. Use the tips if you don't plan to lead a life full of financial problems.

1. Create a plan to reduce expenses: It has been reported that 46 million citizens of this country come under the poverty line. A person with an annual income of $11,484 is actually living under the poverty level. If your yearly income is around $11,000, then you can only afford to spend $916 every month. You can't afford to spend one extra dime even on the necessary needs of your life.


Create a plan to reduce your expenses on the 2 primary needs of life – food and shelter. If you're living in a rental apartment, then your task will be to find out a person who is in a similar financial condition. Once you've met such a person, your task will be to ask him/her to live with you. Both of you can share the apartment and rent.


If the landlord is charging $1200 for a double bedroom flat, then both of you can share the amount easily. You'll have to pay only $600. This will help you save at least $316 from your monthly income.

2. Take advantage of food stamps: You'll be eligible for food stamps with an annual income of $11,000. If you're able to survive, then you can obtain the amount and use it for food and eliminating your debts. Use a portion of the amount for your food and utilize the remaining amount to cut down your debts.


Keep it in mind that you can't move ahead in your financial life without paying off your debts. You need to make your creditors and debt collectors happy in order to improve your finances.


Finally, the last tip will be to use your extra money to make additional payments on debts. For instance, if you're able to save $316 on apartment rent, then you should use it to make extra payments on your various bills. You can also use the money for the purpose of creating an emergency fund.


Money is what matters at the end of the day. You need it to survive in this world. So, take steps to earn more money. If you're currently living below the poverty line, then it doesn't mean that you'll have to stay that way throughout your life. You need to do something to become a wealthy man from being a broke. Try to look for a job that will help you maintain a decent lifestyle. Other than that, try to broaden your work experience so that you can get a better job in future easily. The more money you make, the better are your chances of getting out of debt.

 

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