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Do These 5 Things If Your Bills Are Greater Than Your Income

by William Beel

Unexpected expenses such as an emergency bill or car repairs can be expensive. If your bills are greater than your income, you will need to make some sacrifices and exercise self-discipline, but you can get out from under those bills. Here are some strategies for when your bills are greater than your income.

1. Be Honest With Yourself

Ignoring the situation is the worst thing you can do. Instead, take charge of your finances. Make a list of every debt you owe and the interest rates of each debt. Knowing the truth is painful, but you need to know the whole situation before you can come up with a solution.

2. Consolidate Your Debt

If you have several credit card debts, think about consolidating them by taking out an installment or personal loan. Having several debts can be difficult to manage, and you will be paying more interest. With a consolidated loan, you could pay less interest and have one lower payment each month.

Look for different online lenders and read reviews, such as MaxLend reviews. Online reviews like MaxLend reviews give you an accurate picture of how the lender treats customers. The higher the rating, the better service you’re likely to get from the lender.

3. Look for Wasteful Expenditures

Look at the money that goes out of your account automatically each month. You may be paying subscriptions for services you no longer need. Perhaps you signed up for a free subscription and then forgot to cancel it before the trial period lapsed. 

Cancel those needless subscriptions. Even if it’s only a few dollars each month, those small amounts add up quickly.

4. Watch Those Discretionary Purchases

Also called miscellaneous expenses, discretionary purchases are those things you buy after you’ve paid all your bills. If you have more bills than income, you don’t have money for discretionary purchases. Think hard about the things you can live without.

Make your coffee at home instead of buying it every day from the coffee shop. Cook your meals and stop eating out. Wash your own car instead of taking it to the car wash. Doing things yourself can save you money and help you take charge of your finances.

5. Find a Way To Bring in More Money

Cutting back always helps, but another way to take charge of those bills and pay them off is by getting a second job. Look online for a part-time remote job with flexible hours. Or sell your services on an online marketplace. Whatever your talent is, there is bound to be someone who will pay you for your skills.

Sell those items that are taking up space in your home. You can sell things on Facebook Marketplace or Craigslist as well as on eBay. You can also teach classes online. Or if you have an extra bedroom you’re not using, rent it out. 

Having more debt than income is discouraging, but if you follow these tips, you’ll have that debt paid and be in great financial shape before you know it.

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