How do I pay off debts if I live paycheck to paycheck?

Do you often find yourself broke before the month comes to an end? That is a hard situation to be in. in fact, if you often experience such conditions, you are headed to financial destruction.

Nevertheless, there is always escape routes. The main problem contributing to this condition is the false reasoning that you deserve a special lifestyle, even if in reality we cannot afford.

You end up accumulating debts and this drains your finances every month. It is just so easy to get into debts and so hard to get out.

If you are living paycheck to paycheck, it can be so hard to get going up to the next payday. Making the ends meet is a real struggle for you. You are distressed by bills and you just cannot think of debt payments even for a second. Truth be said, adding debts worsens your situation. Debts usually come with payments everything and inability to submit payment is unthinkable.

Remember missing a payment can have devastating impacts such as penalties and damages to your credit score. Worse still, the temptation of utilizing your credit cards and other alternatives is just so hard to fight. It often feels like this is the only way to keep moving in the phase of difficulties. But trust you me, you can afford to settle your loans despite living paycheck to paycheck.

In this blog, we will show you some easy tips you can employ to pay off debts even though you are living paycheck to paycheck. But then let us start by understanding what it means to live on paycheck to paycheck.

What It Means to Live on Paycheck to Paycheck

I have never come across the definition of this condition. Nevertheless, it simply means you spend all the income you receive every month to settle bills and finance your lifestyle. As a result, you cannot save even a dollar. It is important to note that this condition has got nothing to do with your income level. There are people earning six figures every month but still live paycheck to paycheck, same to very low-income earners. For this reason, it does not matter how much you earn, but it is how you use whatever you earn that counts.

Does it mean you can pay off debts irrespective of our earnings? Well, the answer is yes. However, there is a relationship between what you earn and debt settlement, something we will discuss later. In the following section, we discuss the strategies you can use to pay off debts.

You Can Pay Off Your Debts

Living paycheck to paycheck does not mean paying off debts is a hard thing. Use the following five tips to effectively destroy debts:

  • Budget. To successfully pay off debts, budgets must be your friends, otherwise, you are doomed to fail. Sometimes it seems easy to set a budget but just so hard to live by it. Why? Because of developing a negative view of it. While it is true following your budget might make it sound as though you are on a diet, it is the right thing to do. You may feel so much restricted but you need to understand why you are in that condition. Rather than viewing your budget as boss pointing fingers at you, look at it as a route to financial freedom. Budget can never control you. It is you to control it. It only directs your finances.

Make sure you come up with a realistic budget. If you allocate $50 for entertainment every month but in reality, you spend $150, your budget is not realistic and it is so difficult to follow it. List all your regular expenses and see how much they cost. If their total cost outweighs your monthly income, there is a lot to be done. You need to cut them down as much as possible. Any amount that remains after budgeting should be directed towards debt payment and savings.

  • Don’t compare yourself with others. Comparing yourself with friends is self-defeating. It has often been said that grass is always greener on the other side. Do not try to keep pace with friends, they may be getting into debts. Accept to look weird and utilize cash envelopes, carry lunch to work, and use public transport. In the end, you will take charge of your finances. What is more, you will avoid unnecessary spending and have something left for savings.
  • Begin debt payment. Setting a budget, it is time to devote extra cash on debts. If you are living on a paycheck, the only positive approach to debt is to start paying, even if it means a very small amount. It will count in the end. Cut unnecessary expenses, especially on grocery and use the remaining amount to pay debts. Whenever you get paid for overtime, send that earning to debt. Is there an item you do not use, perhaps in your closet? Sell it and use the revenue for debt payment. Just prioritize your debts whenever you get an extra dollar.
  • Breakaway from poor financial habits. You need to know the difference that exists between good and bad behaviors in this context. It is a good habit of choosing to do what is right readily even though it is not you’d love to do. For example, if instead of having coffee at Starbucks every morning you choose to prepare yours at home. You desperately wish to buy dinner in order to avoid cooking, but you rather choose to cook. By so doing, you will save a lot of funds and use them in a meaningful way. Therefore, examine your behaviors and determine the ones to avoid.
  • Look for ways of earning more money. This is the best way to stop living on a paycheck and paying debts. If you have reduced your expenses in the best way possible, making extra money is the right thing to do. You can work overtime in your organization if there is a consideration for that. Alternatively, you can work on a part-time basis to augment your monthly earnings. It can be so hard, especially to get extra time, but if you really want to change your life you have to do it.
  • Keep saving. If you live on paycheck to paycheck, an emergency can really demoralize you. You may even be tempted to take another debt to finance the unexpected occurrence. There are different loan options that you can check here best money lender in Singapore meant for emergencies but avoid them. If you save, you can successfully fight an emergency. So then, ensure you save at least a third of your monthly earnings towards emergencies.


Living on paycheck can be very distressing. However, you can manage and even pay off your debts if follow the aforementioned tips. Yes, you will face challenges but don’t give up. You will succeed if you keep moving. Always track the progress made and let that be your motivation for pursuing financial freedom.