Imagine what a difference a little more money each month could make. Budgeting can help, but it may not be enough (See Facing Your Debt Problems). There are many ways to increase your income. Some of them you have probably already tried. Others might be new ideas for you. Here is a list of some ideas to increase your income and get out of debt.

In financial distress, it is likely that debt collectors are calling you regularly. Or maybe opening the mail is too hard to face. In responding to debt collectors, remember that you have rights and deserve to be treated with respect, even if you are behind on your obligations.

• Get a second job on nights or weekends.
• Pick up odd jobs in the neighborhood, like yard work or cleaning.
• Learn about the Earned Income Tax Credit.
• Find out if you qualify for unemployment compensation, if you lost your job.
• See if you qualify for food stamps or other food programs, like WIC.
• Investigate other public assistance programs.
• Check with the utility companies to see if they have grants available.
• Get disaster relief if you were affected by a natural disaster or weather problems.
• See if you are entitled to social security or disability payments.
• Make sure you collect any past due child support, and ask the state to help.
• Ask someone in your family to help out for a short time.

Avoid Unnecessary Expenses

In addition to cutting back on unneeded items, there are some hidden expenses that can often be avoided. This is a list of some ideas to cut your expenses and keep your debt under control.

• Get a free checking account. The costs of cashing checks when you do not have an account add up quickly. Many banks will give you free checking with minimal services.
• Only use the cash machine at your bank's branches or other places where it is free.
• Carry cash for small purchases it will help you spend less than putting it on a card and you will save the interest.
• Avoid rent to own plans. They are extremely expensive. Buy used instead.
• Avoid pay day loans. The average interest rate on a pay day loan is 30 percent per month. That is over 300 percent a year. Borrow from a friend or relative instead, and repay it from your paycheck, just like you would at a pay day loan center.
• Use cash only at holiday time. The average amount spent on gifts each year can be equal to a month's earnings.
• Keep track of all food purchases, including convenience stores, fast food, and meals out. Don't forget to include your morning coffee or donut - you might be surprised how much that costs each month.

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