How to Get Out of Debt with No Money?

While getting yourself into debt is easy, finding your way out of the debt cycle can turn out to be an overwhelming pursuit. When you are broke, you might run out of ideas for managing your finances. However, Canadians have several viable instruments to help them get out of debt even when they run out of money. The experts like Alpine Credits can help you with valuable consultation and assistance when it comes to accessing these instruments.

While there’s no one-size solution for all Canadians, you have several ways to ease your financial woes. An educated approach to spending and money management can prove to be valuable.

Do you need professional support with debt?

Calculating your debt-to-income ratio would help you determine whether or not you need professional support for debt management. Simply use your gross monthly income to divide your monthly debt payments to determine the percentage. Typically, this should be less than 43%. However, if you have a high debt-to-income ratio, seeking assistance from an established company like Alpine Credits makes sense.

Also, the financial stress suggests that professional consultation is necessary. Here are some of these tell-tale signs that point to the need for dedicated support.

  • You fail to pay off your credit card and utility bills on time.
  • You manage to make only the minimum payments on your cards.
  • The collection agencies come up with ‘past due’ notices to you.
  • Your credit card happens to be your sole means of survival.
  • Financial anxiety and stress take a toll on your mental peace.

In a nutshell, you would find it challenging to get rid of your debt on your own. In these situations, it would be an intelligible decision to seek professional support to manage your debt.

Debt relief options when you are low on finances

Your circumstances would largely determine the most suitable debt relief option. Have a look at the most viable ways that the experts might recommend for you.

  1. Debt consolidation

Do you have multiple unsecured debts like payday or credit card loans? Simply combine them into one comprehensive loan account through debt consolidation. This way, you can make your repayments manageable and hassle-free. Rather than draining your mental peace while making separate repayments on different dates each month, you can combine them into a single loan account at a lower interest rate.

Experts recommend different means to consolidate your dues, such as a home equity loan. However, obtaining a personal loan can also help you manage these payments. The total value of the loan would be equal to all the diversified loans you currently have. 

It’s essential to have a decent credit score to obtain a debt consolidation loan. However, experts at Alpine Credits can help you secure such loans even if your credit score looks mediocre.

  1. Debt settlement

Another effective means of getting out of your debt is to go for debt settlement. This process involves negotiating with your lenders while you pay them a lump sum amount. Typically, this amount would be lower than what you owe to them. 

Reputed debt settlement companies help individuals negotiate with their creditors. You may have to shell out a fee to the experts. However, it’s worth going for decent deals, as you would be relieved from your financial stress. At times, you might have to obtain a personal loan or a home equity loan to have adequate funds and settle the loans.

  1. Bankruptcy

Although bankruptcy is the last resort, it is a legal process to save your skin from creditors. Under this method, you need to declare yourself bankrupt, where you won’t be able to repay your debts. However, one might have to fork out a certain amount for the bankruptcy itself. 

It makes sense to work with a certified insolvency or bankruptcy trustee. Here, you might have to surrender your assets, attend credit counseling, and give up your cards. Remember, your credit score would be negatively impacted following a bankruptcy, and reflect on it for seven years.

  1. Consumer proposal

The Canadian federal government provides a debt relief solution in the form of a consumer proposal to its citizens. This agreement is legally binding, and a licensed insolvency and bankruptcy trustee must facilitate it. It serves as a negotiated statement, and you need to shell out a certain percentage of the amount you owe. In return, the government would grant you complete forgiveness for your debts.

In this case, your credit score would also drastically dip, which makes the solution one of the less-recommended ones. However, unlike bankruptcy, you can retail your assets. For the next five years, you get to make the repayments free from interest.

Your overall dues and income largely determine the cost of a consumer proposal. In case you are concerned with legal proceedings, going for a consumer proposal would stall the same against you.

  1. Credit counseling

One of the most effective ways to get out of debt is to master strategies from experts and deploy the same. Firstly, it’s imperative to figure out which strategy for debt repayment would suit you financially. Established credit counseling companies can help you strategize your repayment plan. However, you need to look out for a reputable team of experts to help you out. Evaluate their profile based on customer reviews and reputation before proceeding.


You are now aware of some of the best tactics to make your way out of the debt trap. The better the credit score, the faster you can qualify for a debt consolidation loan. This is, by far, the most suitable solution for Canadians. Timely repayments wouldn’t affect your credit score, while you can breathe easy as you gradually offload the debt burden. 

On the other hand, consumer proposals and bankruptcy would adversely impact your borrowing capabilities in the long run. Reach out to one of the leading companies like Alpine Credits for the most suitable solutions. This way, you can wriggle your way out of the debt trap in a few years.