FinanceToo Many Bills Not Enough Money

Too Many Bills Not Enough Money

Mr. CBB
By Mr. CBB
72
Reduce debt by saving money on utlity costs.

Estimated reading time: 9 minutes

Find ways to tackle the problem of too many bills and regain financial stability. Don’t let debt deny you a secure future.

A recent report from an insolvency firm, MLP Ltd., says that more than half of Canadians say they are $200 away or less from being unable to pay all their bills at the end of the month, as higher interest rates and a rising cost of living have stretched budgets.

Although you may feel defeated, please know that Canadians are all struggling.

We have to find ways to squeeze blood from a rock, and that’s impossible for many people who have already spread thin.

Don’t stop researching ways to fight debt because solutions are out there, even if they seem impossible.

How To Handle Too Many Bills And Not Enough Money.
How To Handle Too Many Bills And Not Enough Money.

Credit Is A Bandaid To Fixing Finance

Some Canadians face the reality that they can’t get to the end of the month without running out of money.

This leaves no room for retirement, RESP, or emergency savings.

We humbly turn to credit as a crutch to get us by until the next payday.

Applying for credit cards, lines of credit, or even borrowing from family and friends to make ends meet can be a blessing or a curse.

For some people, having high debt and continuing to spend more than they earn is a disaster.

Unfortunately, debt denial is better than acknowledging it until one is forced to lose it all.

That could mean anything from homelessness, bankruptcy, or job loss.

With grocery prices slated to increase in 2013, it’s time to buckle down and make a game plan before the going gets more challenging.

Do you feel like your hands are tied and you don’t know where to turn?

You’re not alone, but there are ways to tackle this problem, so don’t give up.

Credit is only a bandaid to fix debt.
Credit is only a bandaid to stay afloat or fix the debt.

Reduce Output and Increase Input

You must either improve your income (increase input) or reduce your expenses (reduce output), so you must look hard at your finances.

  • Do you know your net worth? You should.
  • Should you use a budget? You should.

But why should I budget when I don’t have enough monthly money?

That’s OK; you still need to know your numbers even if you are not making enough money to cover the bills.

You can’t improve something when you can’t see what you are dealing with.

Often, I compare this to an accountant who works for a corporation or business.

If they knew the company was struggling but couldn’t give the CEO numbers, how would they know where the problems were?

They need figures to fix financial problems, and you do, too.

If your debt comes about because you spend more than you earn or for other personal reasons, you must take back control.

Budgeting Is important when you have too many bills.
Budgeting Is important when you have too many bills.

Being open to change is the hardest part of budgeting, as no one wants to hear they can’t have something or have to give something up.  

Not everyone is in debt because they spend money frivolously.

However, if you’re in a situation where you have too many bills, cut back and trim the fat from your budget.

You might get discouraged, but don’t be a quitter.

Budgeting is the most critical task that you should conquer with your finances.

It’s simple and will show you areas you need to improve so you can continue to build on designing your budget to make it work for you instead of against you.

Utilities For Low-Income Earners

Reduce debt by saving money on utlity costs.
Reduce debt by saving money on utility costs.

Haggle with your communications company to get a better deal or eliminate what you don’t need.

If you are considered low-income or older, programs are available to help reduce utility costs.

For example, there is the Ontario Electricity Support Program for low-income earners.

Also, for telecommunications, explore the Rogers Connected For Success Program for low-income earners.

There are other ways to get discounted internet in Canada if you want to research.

Grocery Budget

Reduce Grocery Expenses If You Have Too Many Bills
Reduce Grocery Expenses If You Have Too Many Bills

Use coupons, shop flyer sales, price matches, mobile apps, and rewards programs, cook homemade, keep an inventory, and a well-stocked pantry.

Related: How To Find The Best Deals At The Grocery Store

Cook at Home

Cooking at home will save you money instead of eating out.
Cooking at home will save you money instead of eating out.

You can’t do this: cook at home until you are in a better position.

Limit or Reduce Credit Cards

If you can’t afford to pay your bills, reduce or limit your debit and credit card use and live on cash.

Some people prefer to budget money using envelopes or jars, which becomes your monthly cash budget.

Rethink Transportation Needs

Rethink Transportation If You Have Too Many Bills - City Bus
Rethink Transportation If You Have Too Many Bills – City Bus

Look for a cheaper insurance carrier, sell your car, get a smaller vehicle that uses less gas, bike or ride the bus instead of a car, carpool to work, or walk if you are lucky to be within walking distance.

Petrol is at an all-time high in Canada, and there is another vast expense besides mortgages and groceries.

Own A Minimalist Closet

Downsize Your Belongings and Minimize Clothing If You Have Too Many Bills
Downsize Your Belongings and Minimize Clothing If You Have Too Many Bills

Second-hand shops, consignment stores, or even retail outlets have blow-out sales on clothing or end-of-season.

Downsize Your Residence

You may have to downsize if your house is eating up most of your pay or your rent is too high.

If you struggle to pay the mortgage, take in a border, sell, and move to a cheaper city or home.

For renters, the same applies if a cheaper apartment or renting a room is an option.

Consolidate Debt

Please consult with a professional to see what they recommend for you, as it might be something to think about.

Sometimes, consolidating the debt on your credit cards with a 0% balance transfer option or low interest may work in your favour.

How To Earn More Money

Taking everything you learned about and pairing it with increased income also helps when you have too many bills.

Unfortunately, solving the problem takes earning more money, and there’s no roundabout way to fix it otherwise.

Unless you have parents, you can move back in with relatives who might offer you to stay for free or reduced rent.

Although these are just bandaids, the help may get you over the debt hump so you can get back on your feet again.

Remember not to take your time getting to where you can move out again.

Overstaying a welcome can cause a riff between friends and family, even if they don’t say anything out of kindness.

Apply For A Second Job or Overtime Hours

Start a new job or second career to earn extra money if you have too many bills to pay.
Start a new job or second career to earn extra money if you have too many bills.

Pick up overtime hours if you can; if not, look into a second part-time job.

Do what you can to earn income from a second source!

Secure A Better Paying Job or Ask For A Raise

Keep handing out resumes; you never know if a higher-paying job you love will pop up.

Don’t be shy to ask your boss for a raise or to apply internally for a promotion within your organization.

Related: How To Ask Your Boss For A Raise (Free Sample Letter).

Snowball Your Debt Repayment Plan

Pay your bills with the lowest owing and the minimum on the others.

Once you pay off a bill, go to the next lowest until all your bills are paid.

Some call this the snowball effect, and it can be an effective way to get out of debt.

Negotiate Interest Rates

Don’t be afraid to call the credit card companies and tell them your situation.

Tell them you need to get the interest rate lowered, or you might struggle to pay them the money you owe them.

Help Is Not A Scary Finance Word

You don’t have to walk this lonely path alone; ask for assistance.

Most of all, never give up when there are too many bills and not enough money; make a plan of action and follow through.

Take control of your finances and overcome the burden of too many bills.

Find practical solutions to regain financial stability once and for all.

Discussion: What other tips or experiences can you share to help someone struggling with too many bills?

Please leave your comments below.

Thanks for reading,

Mr. CBB

72 COMMENTS

  1. Thanks for the post Mr CBB! There are so very many struggling this holiday season and perhaps this article can help them have an easier 2013. 🙂

  2. Finding ways to increase income is a big deal for fixing any person’s budget/situation. When I first started to get out of debt, I ended up taking a 2nd job and worked 7 days/week for almost an entire year. It wasn’t much fun, but it certainly helped the disposable income.

  3. Good post Mr. CBB! I think that when you know you don’t have enough money then it’s the perfect time to budget. That can help you see where your money is going, how much exactly your short and what might be able to be cut.

  6. Such a great post!! I was definetly in this situation more than once….being a single mom paying for rent and daycare was definetly costly…but i trimmed as much as i could and made it work……and hubby at one point worked two jobs….would work nights and then go back to work from 11am-5pm…i was 8 months pregnant and had to go on mat leave early….luckily…i learned to budget properly and coupon TONS>…..so now hubby only had to work one job….i finally have a set budget started for the new year….cut out the eating out to no more than once a month….strict grocery budget….and love thrift stores 🙂 Thanks for the great post Mr. CBB!! 🙂

    • Joanne! Thanks for sharing your story. It’s great to get feedback from the fans. I can tell from your grocery game posts that you are truly working hard to keep the budget in check. Keep at it, 2013 is around the corner and whole new year of saving!!! Happy Holidays Joanne!

    • Yes, my bills have lowered because of my turning down the heat.. I turn off the hot water when I go out for long periods in the day or if I go away for any period of time.. I unplug everything as well. Turn off my water as I’m on a well system, just in case I end up with any unexpected leaks.. It saves in the long run.. I have budgeted for many years as my dad taught me, when I save so much then I can afford to splurge on something special..

  7. It’s not just Canadians! I used to be one of those people avoided budgeting because I didn’t want to face the numbers. I still struggle with my budget, but I do it faithfully each month, because the alternative is so much worse!

    • That’s correct. I geared the post to my audience which is mainly Canadian. I realize debt is a problem all over the world. Keep up the hard work. I can tell just by the way you blog that you will reach your goals as you are optimistic. Keep at it mate! Mr.CBB

  8. I retired in January 2010 at 66 years of age, for physical reasons. My daughter and kids were living with me since 2004, just moved this summer. Unfortunately what I have had to do since I retired is to cash in RRSP to cover house repairs and pay down debt resulting from repairs and from overextending myself to help my family. These weren’t extravagent expenditures, bathroom reno was a need for safety, roof was a need, plumbing emergencies, etc. Not much left for what I hoped would be a long retirement.
    Thanks for all your wisdom and the chance to win a little.

  9. Good points Mr. CBB. You are the only one that can make the change, so you have to know where to start. No one will change your payments for you without asking and you cannot negotiate without knowing where you stand.

  18. Excellent post …. some good points in there and a number of them I’m trying. The only credit cards we have are Mastercard and Sears. I use Sears once or twice a year so paying it off isn’t a biggie. M/C on the other hand…….we’re trying to pay off. We finally have an income coming in after months of nothing but borrowing off family. It’s not a lot of money but I’m trying to make it work. The biggest problem is hubby not going along and he can blow a budget to hell and back….If I won the money I think I’d put it on the mortgage to help pay that down even a little bit.

    • It’s not easy sometimes convincing others that a budget is needed. Maybe if they participated or saw that the debt was going down it might help them participate. I pray that he takes the plunge and joins you on this journey. I promise you he will look back and thank his lucky stars.

      • I wish….. That boy will make a budget and tear into me about not buying anything we don’t ‘need’ but if he sees something he wants it’s amazing how much he will ‘need’ that item!!! And if I get mad at him for buying something… say another tool of some sort… you can make bets on how long it will take him to find something that uses that tool he just bought and isn’t it so great that he had that tool to do that job!!!!!!!!!! Average time frame is usually a few hours, seldom more than a day.There’s a very loose definition of need going there. Especially if it’s for him. What’s that saying……Divorce..never…….Murder…..yup…

  19. If I didnt have enough at the end of the month (as a one time thing) I’d sell some things I have but am not using around the house.

  20. thanks mr.cbb
    sometimes we need to read something like this to really remember to take a moment and think about where we are in our budgets and lives and if we need to make some changes within that now is the time to take action!

  21. we have been out of debit for 3 years and its great!!
    Its not always easy to budget some times but it;s always easier with coupons and freebies and contest to help.

  26. If i didn’t have enough at the end of the month I would work extra to earn it back and watch my finances the next month closer.

  27. Oh great! Now I have to give away $200!!

    Is it just a random draw or do they have to prove they are improving their finances? It says “enter the $100 give away” and then under that it says “what do you need to do”.

  29. If I didn’t have enough money at the end of the month I’d take on another job, or work extra hours if I could, maybe sell something..

  31. We got rid of the second car,means less gas and insurance.Motgage always comes first above anything else.Sometimes the least in the priority list has to wait until the next month,but still try to make a small payment.Since Ive become disabled I scour the net for freebies and samples of groceries and daily household items(cleaning products,shampoo,soap etc.)We also do laundry,etc during off peak hours to lower utilities..Ummm I’m sure there is more lol!Thanks for the chance:)

  32. I live on a disability pension so money is tight. In August I faced up to some mistakes I made over the last few years and started paying down the debt I accumulated. Your blog is one of a collection I read to encourage my goal of debt free by Aug 2014

    • Thanks so much for letting me know you enjoy my blog. Disability pension is far from enough money for someone to live on. Good for you paying down your debt, very smart move. Happy Holidays and Did you enter the $100 Cash Giveaway?

  33. If I didn’t have enough money at the end of the month, I’d have to use my line of credit to pay any essential bills. Other bills would have to wait and I’d pay the late fee. I’d definitely look at my finances and find ways to cut back expenses or increase income so it didn’t happen again.

  35. I usually just go without I am trying to plan ahead s there is less month after the money runs out but my disability pension does not increase t meet inflation

  36. Great suggestions but it takes work to follow through. We’ve worked hard to try not to buy anything we don’t really need and to cut down on the food we cook so that we don’t throw anything out. Its important to try and live on cash and only take out exactly what you need for the week. Anything left over goes into the pot for the next week.

    • I agree budgeting and saving money does take work because thinking is now involved rather than the general, Oh I’d like that and buy it. I’m glad you have found something that works for you Diana, that’s half the battle, the other is sticking to it. Cheers Mr.CBB

  37. My 2013 has been going pretty well…
    -I have set up an budget: allowing money set aside for bills and groceries, etc.
    -Grocery shopping is always with coupons, price matching, but before anything I always take a look at what I have in the fridge and freezer, before I go out shopping. I always make a weekly food plan that involves my 3 meals each day and budget my shopping around that.
    -I have downsized my bills and other expensese – cut my cellphone plan in half, to a cheaper plan; and looked into a cheaper dentist and car insurance.
    -I have cut up my credit cards – It was hard at first, but I have made due without them. (If I dont save, than I dont have the money for it). I created 2 savings accounts, in which money goes into both from my paycheque, allowing me to budget my money with what I have due.
    -Clothing: I look for sales and what I need. If it isnt in the budget or not on sale, than I wait a few weeks till is.
    As far, as things have been going, I am on the way to achieving my happiness without money problems and without stress….

    • I’m glad you realize that if you don’t have the money for it a credit card isn’t going to cut it. I’m glad to hear all the positive changes you have made. The first step, is taking that step so congratulations to you! Mr.CBB

  39. I have a budget set up every week for groceries, pay with cash so you know how much is being spent and where. Use lots of coupons and look for sales. I also price match the flyers every week so I getting the best value for my dollar.

  40. I plan to combine more things into our trips i.e. banking, post office groceries…all in one big trip rather than several and thereby minimize the gas and wear and tear on the car.

  41. I turned my heat down 7 wear more clothes & I turn everything off when I go out fo rthe day including the hot water tank!!

  43. I use coupons and get free samples where I can; I have been buying in consignment shops for a long time and sell what I don’t need…lots of great tips here 🙂

  44. Besides paying off debt, my major goal this year is to build up the savings.I pm, coupon, cut back, but now it’s time to get brutal.

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