Upgrade your hardware. Most Android phones have better specs than that. You have to remember that emulation takes more resources that the system being emulated. You could also get an Android phone to test on. Eclipse will allow you to deploy the app to your phone via USB so you can use it.
It’s good to have a few test devices anyway. I tend to get old phones from friends and family when they upgrade for cheap lol. Sometimes everything will work fine in the emulator, but on device a it crashes. Or it’ll work in the emulator and on device a, but it crashes on device b.