Too Many Bills Not Enough Money
Estimated reading time: 10 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.
Credit Is A Bandaid To Fixing Finance
Some Canadians face the reality that they can’t get to the end of the month before 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.
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.
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
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
Use coupons, shop flyer sales, price matches, mobile apps, and rewards programs, cook homemade, and keep an inventory and a well-stocked pantry.
Related: How To Find The Best Deals At The Grocery Store
Cook at Home
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
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
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
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
