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Earn a high-yield savings rate with JG Wentworth Debt Relief

How to Pay Off Credit Card Debt with No Money

by

JG Wentworth

July 12, 2024

8 min

Paying off debt with no money

Being flat broke with credit card debt hanging over your head is one of the most frustrating, hopeless feelings a person can experience. Every single dollar gets strategically allocated to bare necessities like food and keeping a roof overhead. But those looming debt balances? They keep inflating with interest charges and late fees despite your complete lack of funds. 

It’s a vicious, self-perpetuating cycle that quickly becomes overwhelming. Mounting debt seems inescapable when you literally have no money available to make a dent. How can you possibly dig your way out? 

While scaling this financial mountain when broke is extremely difficult, it’s not an impossible summit to overcome. With extreme discipline, sacrifice, and planning, you can manage to chip away at debt through creative measures and sheer force of will. 

This information is provided for educational and informational purposes only. Such information or materials do not constitute and are not intended to provide legal, accounting, or tax advice and should not be relied on in that respect. We suggest that You consult an attorney, accountant, and/or financial advisor to answer any financial or legal questions. 

Pinching pennies  

The first step? Adopting a hardcore austerity mindset about eliminating ALL non-essential spending so every penny goes towards debt. That could mean: 

  • Temporarily living with family/friends to avoid rent/utility bills 
  • Paring grocery bills to the absolute bare necessities  

 

  • Cutting cable, gym memberships, Netflix, etc 

 

  • Avoiding restaurants, bars, and other entertainment spending 

 

  • No shopping for new clothes, gadgets, etc 

 

New income streams 

The second step is to ruthlessly find ways to free up new income streams devoted solely to debt repayment. That could include: 

  • Side gigs: Look into sharing economy gigs like ride sharing, food/grocery delivery, or e-commerce services that let you start earning ASAP with minimal start-up costs. 

 

  • Sell everything unused: Go through all your possessions and sell anything you don’t truly need online or through garage/yard sales to generate quick cash injections. One person’s unused junk is another’s sought-after treasure. 

 

  • Leverage marketable skills: Get creative about freelancing skills like web design, freelance writing, data entry work, or other gig economy services you can render remotely or locally for pay. 

 

  • Find new income sources: Look into ways to supplement like donating plasma, participating in research studies, or even the old standbys like collecting cans/bottles or gig work. 

 

  • Get a second job: While taxing, temporarily getting a second job or picking up extra shifts anywhere possible will dramatically accelerate paying down debts through pure hustle. 

 

Try the debt snowball method 

Even if the money is trickling in, establish a solid system like the debt snowball for deploying every penny towards balances: 

  • Start with smallest debt, make minimum payments on others. 

 

  • Roll additional income into paying Down #1 aggressively. 

 

  • Once #1 is slayed, roll that full payment into #2 debt balance. 

 

  • Rinse and repeat, watching the snowball accumulate force. 

 

Boost your morale/motivation 

The other secret to paying off debt with little to no income is to leverage emotional anchors to keep you psychologically invested when hopelessness sets in. For example: 

  • Trade eating/going out for hiking or free hobbies as rewards. 

 

  • Get friends/family to keep you accountable and encouraged. 

 

  • Keep a debt countdown log to visualize your progress. 

 

Climbing out of debt when broke demands ruthless lifestyle changes and financial sacrifice. It feels like a never-ending slog of austerity measures. But by combining a steady flow of new income sources – no matter how small – with a debt repayment system and accountability, you’ll start witnessing tangible progress that continues accelerating over time. Stay the minimalist course when broke, and you can claw your way out from under even the heaviest debt load through steadfast determination. 

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Step 1 of 4 - Debt Amount

Choose your debt amount

$10,000 $100,000+

Need some relief? 

If scaling your mountain of debt solo seems like an insurmountable task, give JG Wentworth a call to speak with one of our dedicated debt relief specialists. If you have $10,000 or more in unsecured debt, you may be eligible for our Debt Relief Program.* Some basic perks to consider: 

  • One monthly payment 
  • We negotiate on your behalf 
  • Average debt resolution in as little as 48-60 months 
  • 24/7 support 
  • We only get paid if we settle your debt 

 

If you think you qualify for our program, give us a call today so we can go over the best options for your specific financial needs. Why go it alone when you can have a dedicated team on your side, helping you accelerate your return to financial freedom? 

*Program length varies depending on individual situation. Programs are between 24 and 60 months in length. Clients who are able to stay with the program and get all their debt settled realize approximate savings of 43% before our 25% program fee. This is a Debt resolution program provided by JGW Debt Settlement, LLC (“JGW” of “Us”)). JGW offers this program in the following states: AL, AK, AZ, AR, CA, CO, FL, ID, IN, IA, KY, LA, MD, MA, MI, MS, MO, MT, NE, NM, NV, NY, NC, OK, PA, SD, TN, TX, UT, VA, DC, and WI. If a consumer residing in CT, GA, HI, IL, KS, ME, NH, NJ, OH, RI, SC and VT contacts Us we may connect them with a law firm that provides debt resolution services in their state. JGW is licensed/registered to provide debt resolution services in states where licensing/registration is required. 

Debt resolution program results will vary by individual situation. As such, debt resolution services are not appropriate for everyone. Not all debts are eligible for enrollment. Not all individuals who enroll complete our program for various reasons, including their ability to save sufficient funds. Savings resulting from successful negotiations may result in tax consequences, please consult with a tax professional regarding these consequences. The use of the debt settlement services and the failure to make payments to creditors: (1) Will likely adversely affect your creditworthiness (credit rating/credit score) and make it harder to obtain credit; (2) May result in your being subject to collections or being sued by creditors or debt collectors; and (3) May increase the amount of money you owe due to the accrual of fees and interest by creditors or debt collectors. Failure to pay your monthly bills in a timely manner will result in increased balances and will harm your credit rating. Not all creditors will agree to reduce principal balance, and they may pursue collection, including lawsuits. JGW’s fees are calculated based on a percentage of the debt enrolled in the program. Read and understand the program agreement prior to enrollment. 

JG Wentworth does not pay or assume any debts or provide legal, financial, tax advice, or credit repair services. You should consult with independent professionals for such advice or services. Please consult with a bankruptcy attorney for information on bankruptcy. 

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