The frustration of choking debt that you’re trying to pay down on a limited budget can zap all the joy out of your life. The situation looks even bleaker when most of the payments go towards interest. With the right tips from financial experts, you can get on top of your financial situation even when cash-strapped.

Reduce Expenses

Cutting costs sounds unrealistic seeing that you’re already sailing your ship on the bare minimum. Consider other options on austerity such as moving into cheaper accommodation, opting out of expensive hobbies and going for freebies- read library books instead of buying, and redeeming coupons.

Involve your family in these cost-cutting moves so that everyone understands there will be fewer or no trips to the ice cream parlor, the beauty salon, restaurants and shopping sprees at the mall until things look up. Do away with cable and use public transport if possible. These savings will help you live within your budget and any extra money channeled towards debt payment.

Sell It!

Looking around your home, you have plenty you can sell. Collect things you don’t need or can do without it and put them up for sale. Do you still need your car? Using online platforms or offline markets like the pawnshop or setting up a yard sale will get you some cash.

Manage your Cash

Make a budget to manage your expenses. That’s the easy part. You need commitment and determination to stick to the budget to realize your objectives. A budget will show you where your money goes and you will need to stop making excuses as you track your expenses.

Do away with credit cards and use cash instead. The envelope system helps in cash management. It enhances financial discipline since you can’t draw from other envelopes for un-designated items. Use any extra money such as tax refund to pay off your loan and save on banking fees by merging bank accounts.

Make More Money

No matter how dire your situation gets, don’t quit your day job when you are in debt. If you can’t get a raise, review your skills set and daily schedule to get a part-time job or do overtime at your workplace. You can pick from the scores of genuine online jobs, some of which are lucrative opportunities.

Be wary of online scammers who seek to defraud those out for a quick online buck. Avoid gambling and any get-rich-quick schemes, as they are a waste of time and will sweep away your money.

Consult a Professional

When you feel overwhelmed by your financial situation, consider looking up professionals for help getting out of debt. Since filing for bankruptcy is not your option, explore other debt relief options such as tax debt relief, national debt relief, credit card debt relief and consolidating debt. A professional will enlighten you on these and other laws in your state like the Mortgage Forgiveness Debt Relief Act that would alleviate your debt problem to manageable terms.

Divert Your Attention

Getting too focused on your debt problem can blot out other important relationships in your life. It can damage your self-image, disintegrate your relationships and even cause stress and related illnesses.

Spend time with successful friends and adopt a healthy lifestyle. Give to the needy, and you will experience a change in your spirit. Start focusing on things you will do when you get out of debt. Use this time to explore wealth creation ideas, spend quality time with your loved ones, and pursue hobbies such as reading books, mentoring others, writing, and learning new skills.