Here are some of the steps that can help you in clearing your debt despite having no money and improving your credit:

Step 1 – Calculate Due Amount: Always begin by calculating the amount that you owe to one or multiple creditors. This will help you in establishing a plan to repay and get out of debt as fast as possible.

Step 2 – Stop Credit Card Transactions: Make sure to restrict or completely stop all credit card transactions to avoid further accumulating debt. This is a good step to begin saving and spending only for essentials till the time you can clear your debt.

Step 3 – Make a Spending Plan: Aim for unavoidable utility bills and make these your priority expenditure. Avoid any other spending till you have a proper budget in place and all your dues are cleared.

Step 4 – Use Unsecured Loans: Sometimes, unsecured loans, such as personal loans can come in handy to come out of a difficult debt situation and help in keeping the credit score unaffected. You must use these only when you have lost all other means of making repayment towards debt.

Step 5 – Approach the Lender: If you have had a good relationship with the bank or lender, you can try approaching them for granting an additional timeline. This way, you can get access to cash sources that can help in repaying the debt.

Step 6 – Reach out to Friends and Family: You may seek help from friends and family members to come out of a debt trap. This can help you save time and money till you can clear your dues.