How to pay your debts with low resources, part 2

This is the second article related to how to pay your debts with low resources, if you have not read the other, the link is at the end of the article.

Step 5: Start tackling bigger debts
Once you've paid off the smaller bills, there are several approaches you can take to deal with the larger debts. We recommend the debt avalanche method, in which the minimum payments are made on each bill, and then the remainder is used to pay off the debt with the highest interest rate. That interest adds to your debt each month, so if you avoid the worst of bills piling up, you'll put the money back in your pocket.

With this method, you keep more of the money you earn each month, which in turn increases your ability to make payments on larger debts.

Step 6: Look for ways to earn extra money
If you're still struggling with how to pay the debt With no money, look for ways to make more money. For better or worse, the "gig economy" has created many opportunities online, from dog sitting to ride-sharing to graphic design. Find creative ways to maximize your free time, but develop the discipline to always put that extra money into your debt.

Read More: How to pay your debts with few resources, Part 1

Step 7: Explore Debt Consolidation and Relief Options
If interest keeps piling up and you find it difficult to stick to your budget and juggle multiple payments, explore debt consolidation options first and then, as a last resort, debt relief.

Debt consolidation is usually just a personal loan that pay your debt outstanding and combine the balances into one payment to your new lender. Ideally, the interest rate on your debt consolidation loan should be lower than some or most of your outstanding balances, making the loan not only more convenient, but also more profitable over time.

On the other hand, debt relief or "debt forgiveness" companies offer to negotiate with creditors on your behalf, trying to convince them to lower the amount of money you owe. Before doing so, they often urge you to stop making payments altogether, as a way of applying leverage to convince the creditor to accept some payment instead of nothing at all. While this strategy may work, it is also guaranteed to negatively impact your credit score. As such, debt relief and forgiveness services should always be your last resort.