Being buried in a mountain of debt is no walk in the park. It is not only very embarrassing, but it is also quite crippling and getting out of debt is difficult.

Debt can take hold of a person’s life with all the constant overthinking and stress it brings. They will feel hopeless while constantly racking their brains for ways to pay it all off.

There is no denying that this is not an easy situation for anyone. But it is worse for those who are already broke, to begin with.

Luckily, all hope is not lost. With the right decisions, a person can still recover from debt even when if they are bankrupt.

So how to get out of debt when you’re broke? Here are the five steps you need to follow:

Staying in debt is never an option. Even when it seems like it will last for a lifetime, it doesn’t have to be this way. But how can a person recover from debt when they don’t have money, to begin with?

Here are some steps to follow to get out of debt.

Make it a priority

About 53 percent of Americans say that debt reduction is their top financial priority. It’s easy to think of ways on how to get out of debt when you are broke. But the real problem lies with following them. 

This list will only be helpful if the person is proactive in paying off their debt. You need to be all in when you want to know how to get out of debt when you are broke.

Once you decide that paying off all debt is the priority, you can start adjusting all your decisions around it. With a lot of determination, discipline, commitment, and hard work, anyone can successfully be free of debt.

Make a plan

Every decision must first start with a plan. Start by assessing the current balances, debt, as well as the interest incurred by a loan. There are many gradients to being broke; you need to understand where you are in the broke spectrum. Once they figure out how much they currently have and owe, they can start coming up with a game plan.

Know which accounts need to be prioritized. You can start with the debt that has the highest interest rate or the one with the lowest balance.

The target is to pay the maximum amount you can afford on one account while paying the minimum on the others.

Cut unnecessary expenses

Since paying the debt is the priority, cutting unnecessary expenses is a must. Review bank statements and see where the money is going. If the expenses are not that necessary, cut it off.

It is imperative to make temporary sacrifices. Once all debt is paid off, you can add it back to your expenses.

Find ways to increase income

By taking in more jobs or rendering overtime work, you can make some money to pay off the debts. Second, the money can be used to make ends meet, which means there’s no need to rely on borrowing money, which will only bury you deeper in debt.

There are several ways to increase income. A person can take on a second job or try to do freelance work. Selling items that are no longer needed can also be another source of income.

Consider getting help from a financial coach

A financial coach can help clients overcome the obstacles that come with managing finances. They can guide people the right way. It can just be the right investment to get out of debt.

Whether it’s a student loan or credit debt, getting out of debt is not easy. But there are always vital decisions that a person can make to transform their finances. Getting out of debt is possible with hard work, dedication, commitment, and discipline.