Encumbrance isn't too much of an issue if you're smart about it. If something vendors for less than 20 plat I usually don't loot it unless it's stackable, or unless I'm near a bank already. It's easy to get distracted by junk loot like Fine Steel, Ring Mail, Bronze, etc. Just let it rot, it will just slow down your progress leveling and ultimately levels will make you more money.
Don't let copper and silver weigh you down - if it builds up just destroy it, it's not worth it. If you can't afford Tinker Bags, spend some time in EC to get the cheaper weight reduction bags like Bag of Sewn Evil-Eye and Light Burlap Sack.
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