Debt’s not a happy subject. But it’s something that most people need to address at some point during their lives. Paying off debt becomes a lot more intimidating when you’re not making a ton of money. Fortunately, it’s still possible to pay down your debt even with slow cash flow.
Create a Comprehensive Budget
Everyone can benefit from creating a budget. But this is especially true for people who need to pay off debt with slow cash flow. These are the things you’ll need to do in order to build a working budget:
- Get all your financial information together. Gather up any bills, credit balances, bank account statements, or anything else related to your finances. This is necessary to get a full snapshot of your monetary situation.
- Total up your income. This might not be the most enjoyable process if you have a slow cash flow. However, you need to know exactly how much money you’re bringing in each month if you want to put together a budget. Make sure you use after-tax income, as this is the true reflection of how much you take home.
- Total up your expenses. You need to include everything in this step, even lunches and cups of coffee before work. Leaving out any expenses will make your budget null and void.
- Distinguish between essential and non-essential expenses. Not all costs are the same. You need to have housing and food. But you don’t need a gym membership or streaming services. Separating these costs will let you see ways to cut out things that you don’t need at the moment. You should also look for less expensive options for your essential costs. Consider getting a roommate, or cutting out dining out altogether.
Prioritize Certain Bills
As already stated, not all your costs are of equal importance. You need to prioritize things like food and housing above all else. Still, if you’re really tight on cash, think of ways you might be able to reduce your costs for these expenses. After these two essentials, you need to think about your utilities, insurance, and car payment if you have one. A lot of utilities also give you a grace period for payments, which means you can be a bit late without losing the service. Just don’t push this too far, or else you might get cut off.
Consider Debt Relief
Debt relief can be a solid choice for a lot of people struggling to get by in their current financial situation. Companies such as Freedom Debt Relief have years of experience assisting people in all sorts of scenarios. Debt negotiation is a strategy that can be extremely effective for those who don’t have strong cash flow at the moment. You can read Freedom Debt Relief reviews to see how their services have made a positive impact on the lives of countless people. They’ve even helped individuals completely eliminate their debt in as little as 24-48 months.
Find Extra Sources of Income
If you have a slow cash flow, you always have the option to make more money. There are several ways you can attempt to do this:
- Look for a new job. If you’re struggling financially due to low income, maybe you’ll be able to make better money working somewhere else. Take some time to see what’s out there, and how much switching jobs would affect your financial situation.
- Ask for a raise. Your managers should value you if you’re a reliable worker. Consider asking for a raise, especially if you haven’t gotten one in a long time.
- Take on an extra job. Try working part-time, or freelancing within your industry. This is a great way to boost your cash flow when times are tough.
Sell Unused Items
No one wants to part with their possessions. But this might be the best way for you to pay down your debt if you’re otherwise not bringing in enough money. You don’t need to sell everything. Then again, creating an eBay account to clear out some unused items is the perfect way to generate additional cash flow.
It’s not easy to get out of debt. This is only made more difficult when you’re struggling to generate strong cash flow. Consider these methods for paying off your bills when you’re not bringing in a ton of money.
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