How Do You Get Out of Debt With No Money?

Sometimes, we end up in tough financial situations. Maybe you’re earning little to no money at the moment, and you don’t have savings to fall back on. Then, something unexpected happens, like an emergency car repair or there’s a death in the family. When money’s tight and life throws a curveball, getting rid of debt could seem impossible.

You still have options, and there’s always a way out. We’re not going to make any unrealistic promises—but we will walk you through the options. Sometimes learning more about your situation can feel empowering—you’re already taking steps to help yourself.

Can You Get Rid of Debt With No Money?

In most cases, no. You usually can’t get rid of debt for free. Lenders and debt collectors may be open to a debt settlement offer, but they’re typically still going to want you to pay something.

Even bankruptcy isn’t entirely free. If you qualify, a judge could discharge (forgive) eligible debts through the bankruptcy process. But there are court filing fees and you might want to work with an experienced attorney. The only way to get rid of debt without spending any money would be to declare bankruptcy, qualify for Chapter 7, and get the filing fees waived. This is possible, but it doesn’t happen often. You’ll have to meet strict income guidelines.

There are other possible solutions. Here are a few steps you could take to deal with debt on a tight budget.

Try to Come Up With a Monthly Payment

If you can put something toward debt every month, even a small amount, that could be enough to satisfy your creditors or go through a debt relief program. Figure out if there’s any way to spend less or bring in more cash. You could:

• Go over your spending and cut any nonessentials: streaming services, fast food, video games, etc.

• Check for opportunities to work extra hours at your job.

• Sell things you don’t need online or by hosting a yard sale.

• Take on a side gig for extra income, such as driving for ride-share services or doing deliveries on the weekend.

• Make some lifestyle changes. Maybe you could sell your car and get a cheaper one, or move in with family temporarily.

Negotiate With Creditors and Debt Collectors

Creditors and debt collectors may be open to working with you if you explain that you’re having money troubles. Some creditors have hardship programs for people in this exact situation. Hardship programs could involve any of the following:

• Forbearance. The creditor pauses your payments. Interest usually keeps growing during the forbearance period, but you’ll have time to get back on your feet financially.

• Smaller monthly payments. The creditor lets you pay less temporarily. If you were able to free up some money, but not enough for the current monthly payment on your debt, then this option could work for you.

• Lower interest rate. The creditor reduces your interest rate, either temporarily or permanently. A lower rate could also reduce your monthly payment and the overall cost of your debt.

If debt collectors are calling you, they might be willing to negotiate. Debt collectors typically buy debt for pennies on the dollar, so they don’t need to collect the full amount to make a profit. You could ask if debt collectors will agree to a debt settlement. If you don’t have money saved for a settlement, find out if they’ll accept a payment plan.

Enroll in a Debt Relief Program

You don’t need to negotiate with creditors and debt collectors on your own. If you’d like professional assistance, you can enroll in a debt relief program.

How debt relief works depends on the company you choose. With Freedom Debt Relief, the process starts with a free debt evaluation that goes over your income, expenses, and debts. Professional Debt Consultants then come up with a plan that fits your needs.

During the program, you make one low monthly deposit to a debt settlement account. Freedom Debt Relief’s expert team negotiates with creditors and debt collectors and notifies you of settlement offers. Once you approve a settlement, the money goes from your settlement account to the creditor.

If you’re unable to make your debt payments, a debt relief program could be the best solution. It’s built around your financial situation, and you get a team of professionals working on your behalf to get rid of debt.

File Bankruptcy

Bankruptcy is often the first thing that comes to mind for how to get out of debt with no money. Bankruptcy does have some costs. For example:

• Chapter 7 filing fees cost $338 

• Chapter 13 filing fees cost $313

• A bankruptcy attorney could cost $1,000 or more

In a Chapter 7 bankruptcy, it’s possible to walk away from your eligible debts within a few months, but you might need to give up some of the things you own. The court will sell them and give the money to your creditors. Chapter 7 bankruptcy is only available if you can’t afford a payment (and it’s the court that decides if you can afford a payment). If your income is too high, you won’t be eligible.

If you’re ineligible for Chapter 7 bankruptcy, you could file Chapter 13 bankruptcy, which requires you to follow a payment plan for five years (three years for lower-income filers). After you finish the payment plan, the court discharges your remaining eligible debt.

Getting Rid of Debt Is Always Possible

You might not be able to get out of debt with no money, but you could find programs that fit your financial situation. If you’re not picturing a way out, it could be time to contact a debt relief company. Take a look at what people say about Freedom Debt Relief to learn about the more than 1 million clients we’ve helped, and then contact us for a free debt evaluation.