---
title: 'How To Pay Off Debt FAST On a Low Income'
source: 'https://youtube.com/watch?v=tIGApCEyYTY'
video_id: 'tIGApCEyYTY'
date: 2026-06-28
duration_sec: 1032
---

# How To Pay Off Debt FAST On a Low Income

> Source: [How To Pay Off Debt FAST On a Low Income](https://youtube.com/watch?v=tIGApCEyYTY)

## Summary

This video provides a practical, step-by-step strategy for paying off debt quickly, even on a low income. The speaker emphasizes the need for discipline, focus, and a specific plan, rather than just talking about it.

### Key Points

- **Mindset and Discipline** [0:00] — Paying off debt fast requires discipline, commitment, and focus on a strategy, not just words.
- **Ultra Focus on Low Income** [0:29] — With a low income, you have little margin for error, so you must be ultra-focused with the money you have.
- **Take Inventory of Debts** [1:05] — First, list all debts from smallest to largest, focusing on depreciating items like credit cards and loans, not appreciating assets.
- **Ignore Interest Rates** [2:03] — When paying off debt fast, interest rates are less important; list debts by balance, not rate.
- **Call Creditors for Settlement** [3:19] — Call creditors to negotiate a lower payoff amount, especially for old debts; it's worth a few hours to save thousands.
- **Avoid Consolidation** [4:44] — Consolidation is a shell game; for fast payoff, don't consolidate unless it's a long-term debt like large student loans.
- **Create a Budget** [6:53] — Determine how much extra money you have each month to dedicate to debt by creating a budget of income and expenses.
- **Prioritize Debt Payoff** [8:01] — Put the debt payoff amount at the top of your budget, treating it as a non-negotiable bill like rent or utilities.
- **Use the Debt Snowball** [9:24] — Apply the debt snowball: pay minimum on all debts, then put all extra money toward the smallest debt, rolling over payments as each is paid off.
- **Find Extra Income** [11:44] — During the process, look for side hustles and cut leisure spending to increase the amount you can put toward debt.
- **Mindset and Habits** [13:50] — Develop a growth mindset, be patient but urgent, and don't get discouraged by mistakes; learn and keep moving forward.
- **Celebrate Small Wins** [15:19] — Celebrate each debt paid off with small rewards to stay motivated, but keep the focus on the ultimate goal of financial freedom.

## Transcript

The things I'm telling you is to help
you try to avoid the problems and
mistakes and issues that I made when I
was trying to get out of debt. Paying
off debt fast, it takes more than just a
simple plan. It takes you being
disciplined. It takes you being
committed. It takes you being focused.
It takes you focusing on a strategy, not
just words and talk. It's a serious
endeavor. It's not something that you
can just do lightly or take lightly. Cuz
if you take debt lightly, debt is going
to hang around your neck for a long
time. Now, with a low income, it means
you got to be ultra focused, right?
Because you don't have a lot of margin
for error. You don't have a lot of extra
money to play around with and joke
around with and have fun with and make
mistakes with. You got to be focused
with the little bit of money you do
have. Guys, can you really wipe out
thousands of dollars worth of debt on a
low income? The answer is yes. You
really can. Now, on this quick video
I'm going to show you exactly how. Now
here's the kicker, though. You got to do
a, few, things,, right?, It's, going to, be
hard. It's going to be tough, but it's
very, very possible. I know many, many
people who've done it. They paid off
thousands, tens of thousands of dollars
in debt and didn't make very much money
but they got focused and dedicated. So
let's just jump right into it. The very
first thing you got to do is take
inventory of what you owe, right? You
have to stop pushing the debt underneath
the rug, right? You got to face the
music. You have to list your debts, all
the things that you owe on a piece of
paper. Just list them. And you can list
them. This is how I would do it. I would
list them from the least I owe, the ones
with the smallest balance, to the most
that I owe in a straight line. Now
listen, we're talking about on this
video bad debt, right? Things that you
owe money on that's going down in value
depreciating items. We're not talking
about real estate, rental properties
commercial property, right? We're not
talking about anything like that. We're
talking about things that you owe that
are going down in value. The credit
cards, the student loans, the medical
bills, right? the payday loans, the the
personal loans, the bank loans. Listen
the things that are not going up in
value. If it's not going up in value
that's what we're talking about on this
video. So, first things first is figure
out what you owe. Now, I don't really
care about the interest rate, right?
Listed them from the biggest interest
rate to the lowest because if you're
trying to pay off debt fast, the
interest rate doesn't matter as much.
The interest rate is not as important
right? Whether it's 10%, 20%, 5%, if
you're going to pay it off in a year or
two or three, it doesn't matter. It
really doesn't matter if you save a
hundred or $200 over the course of a
year or two, right? So, I don't care
about you listing your debts highest
interest rate. Just list them from the
ones that you owe the least on to the
ones that you owe the most on straight
down on a piece of paper. Right? Part of
the big problem is that some people
they really don't even know what they
owe. They're scared to look at it. They
just know, hey, I owe some money and I'm
not really sure how much. And you just
have this fear of actually facing what
you actually owe. But you got to get
over that, right? You got to get past
that point where you don't want to look
at it. Okay, those days are over because
anything that you want to fix, you have
to understand what the issue is. You got
to understand the problem. In other
words, you can't fix a problem until you
face a problem. That means you got to
know what you owe. That's the very first
thing, right? If me and you were having
a conversation, I say, "Well, how much
debt do you have that's on depreciating
things?", You, ought, to, be able, to, tell
me "Okay 40,000
23,000, 17,000." You should know that
off the top, right? That's the first
thing you got to do if you're trying to
attack this debt fast. Now, the second
thing that I suggest you do is to call
your creditors and see if there's any
way possible that you could settle. And
when I say settle, I mean you owe $5,000
on a medical bill. Maybe if you pay in
the next 3 months or so, they'll knock
that down to
$3,500. Sometimes, specifically medical
bills, sometimes you have a old creditor
that's been hanging around for a while
that you can actually settle with. for
sometimes, you know, half the amount
threequarters of the amount, right? I
can't say really pennies on the dollar
because that's going to be hard to come
by. But you got to call them. So, first
thing is list them and you have them
listed. You know who they are. Then give
them a call and say, "Look, can I don't
have very much money. I don't make very
much money, but you know, can I actually
pay uh this amount on this instead of
paying that amount if I pay it at a
certain time?" Sometimes your creditors
they will actually welcome that because
it says, hey, we're going to get some of
our money. They may not be able to get
all their money, but maybe they can get
some of their money. So, it's just an
option that you should consider if you
have these debts laying around, right? I
know it's kind of far-fetched for some
creditors, but you just never know. It
could be a 5minute phone call. They
could knock thousands of dollars off the
debt you owe. I say it's worth a shot.
If you got to spend 3 hours calling all
of your creditors to see if you can
negotiate a lower price or a lower
amount that you owe, why not do it? It's
not, going to, hurt, you., It's, just, it's
just two or three hours that could save
you thousands. Now, just to sort of get
this out the way up front because people
ask me this all the time. Should I
consolidate my debt? Listen, my opinion
is you don't really need to consolidate
your debt unless you are you plan on
this taking out four, 5, 6, 8, 10 years?
If you try to do this thing fast and you
pay off this debt quick, you're just
playing a shell game really with your
debt, right? You're moving it from here
to here to here to here just so you can
get a a quarter of a percentage off of
the interest rate or half percentage off
or two or 3%. Look, you're trying to do
this thing fast. Again, the interest
rate doesn't matter. And so therefore, I
would not consolidate in most cases.
Now, if you owe $300,000 in student loan
debt and you know it's going to take you
about four or five years, maybe you
should consolidate in that instance
because the interest you save over four
or five years might be significant
enough to make a difference. But
otherwise, for most debts, just go ahead
and pay them things off and don't
consolidate it, right? Sometimes we like
to kind of move things around and think
we're really doing something different
or special or wonderful. And not
necessarily. Sometimes instead of making
the thing softer and easy for you when
you're trying to pay off debt, make it
hard. The harder you make it, the more
desperate you get and the faster you
move and the more urgency you have. So
psychologically, you want to force
yourself to be in a hurry to pay this
off, right? You want to force yourself
to do this thing fast. And the best way
to force yourself to do this thing fast
is not worry about consolidating
interest rates, putting this. No, just
go ahead and pay it off. Get it done
right. No excuses to drag this thing out
further than you have to drag it out.
That's just my opinion. You got to make
it hurt sometime. If you don't make it
hurt and it's too easy and you just
chilling cuz you consolidated here and
you move some there, you're going to be
5 years down the road, 10 years down the
road, 20 and still struggling with debt.
Guys, if you're getting any value from
this video, do me a favor. Smash the
like button and most of all share this
video with someone who you know could
use this valuable information. Also
please drop me a comment below and let
me know your thoughts. Now, let's get
back to the video. So, now you've taken
inventory of what you owe. You know
exactly what you owe. You've listed them
out. You've called everybody to see if
you there's a settlement amount that you
could pay a little less on. And now you
have to think about how much money do
you have extra every single month to
actually go towards the debt? Because
now you want to start paying on the
debt. And you want to pay as big a
chunks as possible on the debt so you
can pay it off as fast as possible.
Listen, there's no uh magic formula to
what I'm trying to explain to you.
There's no uh uh special thing that you
can invest in and do this and and try to
No, you got to actually pay it off
right? And to pay it off, you got to put
as much money as possible towards it.
And so that means you have to do a
budget. And when you do a budget, you
might have to do this for a couple of
months so you can figure out how much
you have. But when you do a budget
income and expenses, you need to figure
out how much extra each month that you
have to go towards the debt. Right? So
that's number three. Look at a budget.
Look at your budget and figure out how
much you have that you can dedicate to
paying off your debt every single month.
For some of you, it may be $150 you have
left over. For some for others, it may
be $1,000 you have left over, $2,000
that you have left over every month that
you can plow towards your bad debt. And
again, if you've never done a budget
before, you may have to do a budget so
you can figure out what this amount is.
And let me say this, once you figure out
that amount of money that you have left
over every single month to put towards
your debt, you need to now take that
amount and on your next budget, maybe
the second or third month, the next
budget, you need to put that amount at
the top of the budget, right? So just
under giving and tithes and food and
rent, you need to have debt payoff. And
then you need to take that amount, put
it at the top of your budget, call it
debt payoff, and that becomes a bill
just like your lights, water, and gas
just like your car payment, just like
anything else you do. It becomes a bill.
And so now you have a set amount because
you figured this out over a couple
months how much money you have to
actually put towards debt. You take that
amount and you don't just Here's what
you don't do. You don't pay all your
bills and then whatever's left, you pay
on debt. No, I don't want you to do
that. I want you because you're trying
to do this thing fast and you got to
have a sense of urgency, right? You got
to hurry this thing up. So, take the
amount that you have left every month
put it at the top of the budget, just
like a bill, and write it into your
budget every single month because you're
doing a budget that's zerobased. And a
zerobased budget just means you spend
all your money on paper first, right?
All the money you know that's coming in
for income, you spend it. One of those
major expenses that goes at the top with
your other needs is debt payoff. Now
the fourth thing is this. You use the
debt snowball. What is the debt
snowball? The debt snowball is an easy
way to pay off your debt. All you have
to do with the debt snowball is take
that amount that you put at the top of
the budget that you have to put your
towards your debts every month. You take
that amount and you apply it towards
your smallest debt. Remember, you listed
your debts from smallest to largest. You
take that amount. Let's say that amount
is $500 every month. You take that $500
and you put it towards your smallest
debt. Let's say your smallest debt is
paying $100 a month on a credit card.
Now you pay $600 a month on that credit
card until it's paid off. Then you take
the $500 extra plus the $100 you were
putting towards that first debt, $600.
You take that $600 and you put it
towards the second debt until the second
debt is paid off. How however many
months that could be, right? And then
you take all the money you was paying on
debt number one, $100 a month. The money
you were paying on debt number two, and
plus the extra $500, whatever that roll
up amount was is going to be, maybe $7
$800. You take that $7, $800, you put it
towards the third debt, and you keep
going down the list of all of your debts
and putting all the money you have, the
extra money you got at the top of your
budget, plus the regular amounts you
were you were actually paying on those
the monthly amount you were paying on
those, debt number 1, 2, and three, and
you roll it all over to the next date.
And you keep doing this until you pay
all the debts off. That's the debt
snowball. Right? Now remember with the
debt snowball, you're still paying the
minimum on all of your debts. As you pay
them off, it's pretty cut and dry
right? But it also begins to move very
quickly once you get through a few of
these debts. It goes starts going fast.
Next thing you know, you're putting
11200 13 $1,400 towards one debt until
you pay it off. It works. It really
really works. Now, why is it called the
snowball? Just like a snowball rolls
downhill and gets bigger and bigger and
bigger as it picks up extra stuff, extra
money in this case. That's the same
thing the debt snowball is doing. The
debt snowball is giving you a faster way
to get some momentum to pay off your
debts. And when you start doing this
thing fast, guys, interest rates doesn't
matter, right? Because you're going to
be doing it. You're going to be paying
$1,500, $2,000 a month towards a credit
card eventually, and you're going to pay
it off quick. Now during this whole
process you got to be looking for extra
ways to make additional money that you
can put towards the debt snowball right
so maybe it's a side gig a side hustle
and it also means that during this time
you're not spending extra money on
vacations right you're not for this two
or three years you're getting out of
debt fast on this low income you don't
have a lot of extra money to go kick it
you don't have a lot of extra money to
eat out all the time you don't have a
lot, of, extra, money, to, go, do, some, of the
leisure things you really enjoy and love
doing right you just don't have $2,000
$3,000 to go hang out in Cancun. You can
do that when you finish getting out of
debt fast, right? Cuz you got to be
dedicated to this process. Paying off
debt fast, it takes more than just a
simple plan. It takes you being
disciplined. It takes you being
committed. It takes you being focused.
It takes you focusing on a strategy, not
just words and talk. It takes you taking
and trying to get extra money to pile on
top of this debt. Right? It's a serious
endeavor. It's not something that you
can just do lightly or take lightly
because if you take debt lightly, debt
is going to hang around your neck for a
long time, right? So, you got to have
the mindset and you got to develop the
habits along the way. It's difficult
right? You got to have these habits that
are going to get you to the next level.
You can't do what you've always done
with your money. If you're trying to get
out of debt fast, you got to do
something different. So, you got to be
determined and not be discouraged. You
have to be patient. But at the same
time, while you're being patient with
yourself in the process, you got to be
urgent in terms of what you're doing.
You got to be in a hurry to pay off debt
fast. You cannot afford to be uh
distracted and lolly gag and take your
time. You got to ignore what other
people are doing and what other people
are buying or the vacations that other
people are going on. You got to sort of
ignore that and have some tunnel vision
so you can stay laser focused on the
goal of getting out of debt fast even
when you're on a low income. Now, with a
low income, it means you got to be ultra
focused, right? Because you don't have a
lot of margin for error. You don't have
a lot of extra money to play around with
and joke around with and have fun with
and make mistakes with. You got to be
focused with the little bit of money you
do have. But it's about a a growth
mindset. It's about understanding and
embracing a process, right?
Self-improvement, being encouraged
being motivated, right? Being inspired
to do something different. And if you
mess up, because we all mess up. It's
true. We all make mistakes when we're
trying to get out of debt. Now, it took
me a long time to get out of debt. Like
a long time. The things I'm telling you
is to help you try to avoid the problems
and mistakes and issues that I made when
I was trying to get out of debt, right?
I don't want it to take you 30 years to
get out of debt. I want you getting out
of debt in three years. So, don't do
what I did, right? So, if you mess up
don't quit. Get back on the right path
and keep going going. Don't look back
and don't wallow in your past and worry
about what you did and didn't do. Learn
from your mistakes. Make the adjustments
and just keep moving forward. So, it's
all about behaviors if you want to get
out of debt fast, especially on a low
income, right? So, you're listing all
your debts from smallest to largest.
Smallest at the top, largest at the
bottom. And then you're doing a budget
to figure out, okay, how much extra
money do I have every month that I could
dedicate towards this debt. Then you're
taking that amount, putting at the top
of your budget for the next month or
month and beyond. You're putting that
money at the top of the budget. Call it
debt payoff, whatever you want to call
it. Put it up there next to food. At the
same time, make sure that to get to that
figure, you're cutting your expenses as
much as possible as well, right? And
then in the process of doing the debt
snowball, do what you can to boost your
actual income, extra money, and take
that extra money, include it in the
amount that you put at the top of your
budget if you have extra money or extra
income. And on the way, be sure to
celebrate some small wins. Man, listen
this is a process. It's a long process.
It can be stressful. It can be hard. It
can be tough. It can be difficult. But
guess what? When you pay off that first
debt, maybe you take and and take
yourself out to out to eat somewhere.
Maybe you go to a movie. Maybe you do
something special for yourself. You
know, spending a little bit of money to
do something for yourself so you can
celebrate these small wins because it's
a small win every time you pay off a
debt. It's a small win. And so if you
pay off four, five, six debts, you need
to be celebrating because every time you
pay off a debt, you get one step out of
that matrix and you also get that same
step towards financial freedom, right?
Just make sure you celebrate wisely and
keep your energy high. Listen, this is
how you get out of debt fast. It's no
special miracles. There's no special
thing to that you got to make sure you
do. There's no pay off debt tomorrow
special thing. It's a process and you
got to buy into it and you have to focus
on it, but it can be done. It just takes
strategy. So, yeah, you really can wipe
out tens of thousands of dollars of debt
on a low income and you can do it fast.
But it's up to you, right? You got to do
it. Hey guys, do me a favor. Share this
video with somebody who you know needs
to hear it. Somebody that may be in debt
and wanting to get out of debt or
needing to get out of debt as soon as
possible because these principles
actually work for anybody. whether you
own a low income or not a low income.
So, please share the video. Smash that
like button below and drop me a comment.
Let me know if you're out of debt. How
did you get out of debt? Did you do it
fast or did it take a long time? Let me
know in the comment section below. Guys
if you want to be rich, you don't have
to start a business. You don't have to
be an entrepreneur. Everybody doesn't
want to have their own business. Totally
understandable. So, if you want to build
wealth instead of starting a business, I
recently did a video talking about what
you can do instead of starting a
business if you want to get rich. Check
out that video right here. Next base.