If you’re overwhelmed with debt and can’t even cover your bills, I’ve been in your shoes. Not especially recently, but I remember it all like it was. I’ve dealt with the fear of collection calls, juggled which bills I could pay late, filed for bankruptcy, and worked my way back up from the bottom. So I’m not writing this from some ivory tower of financial wisdom, I’m writing it as someone who knows what it feels like to be completely stuck.
This guide isn’t about theory. It’s about practical steps you can take when the math doesn’t add up, when you’re living paycheck to paycheck (or worse), and you feel like you’re drowning. You won’t fix everything overnight, but you can make progress… one step at a time.
Article highlights
- Learn how to prioritize survival over everything else
- Get strategies for handling debt when you have almost no money
- Find out how to deal with creditors, credit damage, and mental fatigue
Step 1: Get honest about where you actually stand
The first step is simple, but it’s brutal: you have to look at your numbers. That means opening the banking app, digging out the bills, and writing everything down so you can see it all in one place. Not just your debt totals, but what you need each month just to live. A full budget.
Start with your total monthly income. Then make a list of your absolute essentials: rent or mortgage, utilities, food, transportation, insurance if it’s required to stay mobile. Those are your survival bills. After that, list all your debt payments, subscriptions, and anything else that hits your account regularly.
What you’re looking for is the gap. And I promise you, if you can name it, you can work with it. When I did this for the first time, I found hundreds of dollars going to things I didn’t actually need. I was trying to pay credit cards and loans off while falling behind on my mortgage… and still spending like an idiot on things I didn’t need. That realization helped me completely reset how I approached money.
This step isn’t about judgment. It’s about clarity. Once you see exactly what’s broken, you can stop spinning in circles and start making decisions that fix it.
Step 2: Focus on keeping your head above water, not your credit score
When you can’t pay all your bills, something has to give. And I’ll tell you from experience: your credit score should not be the priority right now. Keeping your family housed, fed, and safe is more important than keeping your FICO from dipping.
There’s a concept called “the four walls” that helps some people. It means shelter, food, utilities, and transportation. These are the non-negotiables. If you can’t afford everything, you cover these first no matter what. That means you might miss a credit card payment or even delay a loan, and that’s okay, because missing a payment won’t ruin you forever. But missing rent or losing your car might.
Once I shifted my mindset and started protecting my basic needs first, I started to stabilize. It wasn’t instant, but it was the first real move forward. You need to keep the lights on, keep the fridge full, and stay mobile if you can. That’s how you buy time to make a real plan.
Some bills will go unpaid. You might get calls and emails. But in survival mode, you don’t have the luxury of doing everything. Focus on staying alive and keeping your foundation intact.
Step 3: Call your creditors, even if you’re terrified
I know it feels embarrassing to admit you can’t pay. But calling your creditors is one of the most powerful moves you can make. I’ve done it. I’ve picked up the phone while my heart was racing and said the words: “I’m going through a financial hardship and I need help.” More often than not, they listened.
Credit card companies, lenders, even utility providers often have hardship programs they don’t advertise. These might include pausing payments, reducing interest rates, or setting up temporary minimums. But they won’t offer it unless you ask. And the key is to call before things go into collections, not after.
Just be honest: your income dropped, you’re overwhelmed, and you want to avoid default. Some creditors will work with you, some won’t. But even one payment deferral can give you a little breathing room that changes everything.
If phone calls are too stressful, many companies also have secure messaging through their websites where you can ask about hardship support. Saying nothing is the worst option. Any forward communication is progress.
Step 4: Build a debt strategy, even if you’re flat broke
If you’re barely making ends meet, “paying off debt” can feel laughable. But even if all you can do is $25 or $50 a month, that money can still make a difference. I didn’t start making real progress until I chose a method and stuck with it—even at a snail’s pace.
There are two main strategies. The snowball method means you pay off your smallest balance first. Once it’s gone, you roll that payment into the next debt. The avalanche method means you focus on the highest interest rate first, which saves more money over time. I’ve used both at different points depending on what I needed most: motivation or efficiency.
Use our debt repayment calculator to plug in your numbers and see what’s possible. I used to think $50 wasn’t worth it, until I saw it could cut a full year off one of my cards. What matters most is consistency, not perfection. This could take a while to get your head above water again.
Even if you can’t pay the full minimum on every account, pay something toward one priority account. It keeps you engaged and reminds you that you are making progress.
Step 5: Create temporary space, any way you can
This is the part where things get scrappy. I’ve had to cancel subscriptions, dig into recurring charges I forgot about, and ask for payment extensions just to buy a little time. Look through your accounts and ask what can go, even for a few months.
Are there unused memberships, auto-renewing subscriptions, or unnecessary insurance add-ons? Cutting these doesn’t solve the bigger picture, but they can give you breathing room to start moving forward.
If you can, look for ways to bring in a little extra money. That might mean offering services locally, freelancing online, or asking for a couple extra shifts. I know it’s not always possible. But if there’s a small move you can make, do it. It’s not about overworking yourself, it’s about changing the math just enough to catch your breath.
And if you can’t earn more right now, don’t beat yourself up. Focus on what you can control and don’t be afraid to use community support. I’ve leaned on food banks, utility assistance programs, and local nonprofits when I had no other options. They exist for a reason.
Step 6: If you feel totally overwhelmed, credit counseling can help
You don’t have to go this route, but if things are too tangled to manage alone, nonprofit credit counseling is an option. Look for organizations certified by the National Foundation for Credit Counseling (NFCC). These are not debt settlement companies trying to sell you something, they’re legitimate, often free services.
A credit counselor can help you sort through your bills and options. They may recommend a Debt Management Plan (DMP), where they negotiate lower interest rates and consolidate your payments into one. It’s not for everyone, and you still have to commit to a monthly plan, but it can stop the bleeding if you’re falling behind on everything.
I explored this path before I filed for bankruptcy. It helped me understand what was possible and what wasn’t. If you feel like you’re drowning, even just one conversation with a counselor can help you catch your breath.
But also know this: if you’re determined and focused, you may not need outside help. You can do this yourself with a plan, patience, and time. Credit counseling is simply a tool for when the stress becomes too much to navigate alone.
Step 7: Bankruptcy isn’t the end, but it can be the beginning
I’ve filed for bankruptcy. I’m not proud of it, but I’m not ashamed either. It was the right decision for where I was at the time, and it gave me the reset I needed. And here’s the thing: it wasn’t the end of my financial life, it was the beginning of a new chapter.
Today, years later, I have a credit score over 800, zero debt except for my mortgage, and needed no massive salary increases to achieve those goals. I just kept grinding, staying consistent, and making better choices with money over time. Bankruptcy helped me stop the bleeding so I could start rebuilding.
If you’re truly out of options, no income, debts in collections, behind on everything… talk to a bankruptcy attorney. Most offer free consultations. They’ll explain the difference between Chapter 7 and Chapter 13 and whether you qualify. It might not be the answer, but it’s worth understanding the option.
This is not failure. It’s a legal tool meant to give people a second chance. If you’ve reached that point, use it to start fresh. Starting again with no debt literally allows you to start over, just don’t make any more bad decisions with money if you go this route. You should learn a valuable lesson if you have to file bankruptcy, don’t waste it.
The Bottom Line
Getting out of debt when you can’t pay your bills starts with survival and covering the basics before anything else: Pay for food, shelter, utilities, and transportation first. Call your creditors and ask for hardship support. Build a strategy, even if you can only spare $25 a month.
Use tools or apps at your disposal to stay focused, and lean on free resources if you need support. Bankruptcy is not the end, it’s just one possible step in a long recovery that can lead to financial peace. Hopefully after reading this article though, you’ve found another way out for yourself.
I’ve lived this horror. You are not alone, and you are not stuck… but it may seem like it. Take the next right step. That’s all it takes to start climbing out, one small step at a time.