Dear Peak Money,
I’ve been out of work for about six months now. I had a good emergency fund, found a roommate and got a part-time job to help with bills. But I’m out of cash, and my credit cards are almost maxed, with too little income right now to live and pay my debt.
What’s my next step?
Sincerely,
Mad Maxed Out
Dear Mad Maxed Out,
I’m really sorry that you are in such a challenging situation, the cost of living has been astronomical, and it doesn’t seem to be slowing down anytime soon.
You might consider calling your credit card company to see if you can negotiate the interest rate they are charging you.
- Many times all it takes is asking, and the cost of having a balance on your credit card might decrease.
Alternatively, there are sometimes opportunities to do a balance transfer to a credit card with an extremely low promotional rate.
- The key here is that you’ll need to pay off the balance while the promotion is on, as sometimes the rate will go back up after the promotional period ends.
You might also consider negotiating other variable expenses, like your phone bill, utilities, or insurance. Many times there are great promotional deals that they can give you.
- Utility companies often also have financial aid programs, so you’ll need to search for something in your province—here is an example available in Alberta.
I’m also an advocate of increasing your income. I know you have a part-time job, but if there is a way you can monetize any skills that could help with your cash flow injection. Things like writing online or picking up projects on Fiverr or Upwork.
Janine Rogan is the Founder and CEO of The Wealth Building Academy, an award-winning Chartered Professional Accountant (CPA), TEDx speaker, and the author of The Pink Tax. She also publishes weekly videos on Youtube and shares financial tips and tricks on Instagram.