Strong Mindset:-

Being broke and in debt at the same time feels like being stuck in quicksand — the more you try to move, the deeper you sink. I’ve been there, staring at my bills, thinking, “How can I possibly pay this off when I barely have enough for groceries?”

The good news? You don’t need a massive salary or a miracle to start paying off debt. What you need is clarity, small steps, and a mindset shift. If you feel overwhelmed and don’t know where to begin, here’s the exact approach that helped me crawl out of the cycle when I had practically no money.

1. Face the Reality of Your Debt

The first step is to stop avoiding the truth. I know it’s scary, but you can’t fix what you don’t know. Grab a notebook or open a spreadsheet and write down:

• Every debt you owe (credit cards, loans, etc.).

• The interest rate for each.

• The minimum payment.

Seeing the numbers might sting, but trust me, clarity is power. Once you know the total, you can make a plan to tackle it step by step.

2. Stop Adding to Your Debt

When I was broke, I kept thinking, “I’ll just put this on my card and deal with it later.” But later never came — it just got worse. I made a rule for myself: no new debt, no matter what.

Instead of swiping my credit card for small expenses, I switched to cash for day-to-day spending. That one change helped me stop digging a deeper hole.

3. Create a Bare-Bones Survival Budget

When you’re broke, a complicated budget won’t work. What you need is a simple “survival budget” where you only focus on essentials:

• Rent or housing.

• Food and basic groceries.

• Utilities.

• Minimum debt payments.

Cut out or pause anything that isn’t necessary — streaming subscriptions, impulse shopping, even takeout. This isn’t forever, just until you gain momentum.

4. Start With Small Wins (Even $5 Counts)

When I first started paying off debt, I didn’t have extra hundreds of dollars lying around. So I started with what I had — even if it was just $5 or $10.

I remember paying $10 toward one credit card, and while it seemed small, it gave me this feeling of “I’m doing something.” Those small wins add up over time and build your confidence.

5. Sell What You Don’t Need

When I was broke, I looked around my home and realized I had stuff — clothes I didn’t wear, an extra coffee machine, and old electronics. I listed them on Facebook Marketplace and eBay.

In one weekend, I made $150, which I used to pay down my smallest credit card balance. It felt like finding money I didn’t know I had.

6. Use the “Snowball” or “Avalanche” Method

Once I started making progress, I used the snowball method — I focused on my smallest debt first while paying minimums on the rest. Every time I knocked out one balance, I rolled that payment into the next.

For some, the avalanche method (paying off the highest interest debt first) makes sense. Pick whichever one keeps you motivated — because motivation matters more than math when you’re broke.

7. I Turned “Clutter into Cash”

One of the fastest ways to find extra money is to look around your home. I sold:

• Clothes I hadn’t worn in a year.

• A spare blender and coffee machine.

• Old books and unused gadgets.

Platforms like Facebook Marketplace, Poshmark, or eBay became my best friends. In just a few weeks, I earned over $400, which went directly toward my smallest debt. It felt like I was decluttering my life and my finances.

8. I Did “No-Spend Weekends”

Weekends used to be my budget killer — takeout, coffee runs, random Target trips. So I challenged myself to do “no-spend weekends.”

Instead of spending, I’d:

• Cook fun, budget-friendly recipes.

• Watch free movies or read books I already had.

• Explore local free events or parks.

These weekends saved me $100+ every month that I used to chip away at my debt.

9. I Used Cashback & Rewards Apps

When you’re broke, every penny matters. I signed up for cashback apps like Rakuten, Ibotta, and Fetch Rewards, which gave me small rewards on everyday purchases. I’d cash these out for gift cards and use them to cover groceries — freeing up money for debt payments.

10. I Started the “$5 Rule”

Whenever I had a $5 bill, I’d stash it in an envelope. At the end of each month, I’d take whatever I saved — even if it was just $20 — and make an extra payment on my smallest debt.

It might sound silly, but small amounts like this add up faster than you think.

11. I Found Side Hustles That Didn’t Feel Like Work

I didn’t have the energy for a second job, but I still needed to make extra cash. So, I found low-stress side hustles like:

• Pet sitting for neighbors.

• Taking online surveys in my free time.

• Freelancing my skills (writing, social media management).

These hustles added $50–$200 per month — every dollar went straight to debt.

12. I Built a “Mini Emergency Fund”

This might sound strange when you’re broke, but having even $200–$300 saved is a game-changer. Without it, every small emergency — like a flat tire or a medical bill — pushed me deeper into debt.

So, I put aside a tiny cushion before going all-in on extra payments. It saved me from using credit cards for unexpected expenses.

13. I Cut Subscriptions & Negotiated Bills

I realized I was paying for things I barely used:

• A $15 gym membership I hadn’t visited in months.

• Two streaming services I didn’t watch.

I also called my internet and insurance providers to ask for discounts. A simple 10-minute phone call saved me $40 a month. That’s $480 a year — money I could redirect to my debt.

14. I Created “Micro Goals”

Paying off thousands of dollars when you’re broke feels impossible. So, I broke my debt into tiny, achievable chunks.

• First goal: Pay $100.

• Second goal: Pay another $100.

Each time I hit a small goal, I celebrated (for free) and kept going. It made the journey less overwhelming.

15. I Stopped the Guilt Spiral

Before, every time I slipped — like buying takeout — I’d feel guilty and stop trying. But I learned that one mistake doesn’t mean failure. I’d forgive myself and get back on track the very next day.

16. I Visualized My “Debt-Free Life”

I’d spend five minutes each morning imagining how life would feel without debt:

• No more late fees.

• The freedom to save for things I truly wanted.

• Peace of mind every time I checked my account.

That visualization gave me strength to keep going, even on the toughest days.

17. I Celebrated Progress Without Spending

Each time I knocked out a debt or even paid an extra $50, I’d celebrate with something free — a long bath, a walk in nature, or a self-care night. Celebrating keeps you motivated.

18. I Made Debt My “Challenge,” Not My Punishment

Instead of seeing debt as a curse, I reframed it as a challenge to beat. I even turned it into a game by creating a tracker on my wall. Seeing the numbers drop each month made me feel like I was winning.

19. I Learned That It’s Okay to Go Slow

Being broke means progress is slower — and that’s okay. Even if I could only pay $10 extra some weeks, I reminded myself: “It’s still progress.”

20. I Chose Consistency Over Perfection

The real secret? I didn’t give up. I stayed consistent, even when my payments were tiny. Over time, every small step stacked up, and I began to see my balances go down — one by one.

The Bottom Line:-

Paying off debt when you’re broke isn’t easy, but it’s possible. You don’t need to be perfect; you just need to start. Every small choice — every dollar saved, every $5 extra payment — is a step toward freedom.

If I could do it while feeling completely stuck, you can too.