When you’re in a financial crisis, it may be tempting to turn to short-term solutions that actually worsen your financial burdens in the long run. Some of the most accessible types of debt, like payday loans, come with incredibly high costs that can push people into a continuous cycle of borrowing to make payments.
What can you do to lessen your financial burdens in the short run without digging deeper into a hole? Here are some strategies for freeing up your resources and creating more breathing room in your budget.
Many of the biggest items in a typical budget—such as car loans, student loans, mortgages and utilities—may seem unmovable. But these often come with temporary relief options for those who are struggling.
For instance, borrowers experiencing financial hardship may be able to pause or reduce their mortgage payments for a time if they meet the eligibility requirements laid out by the Federal Housing Administration (FHA) in the US or the Canada Mortgage and Housing Corporation (CMCH) in Canada.
Likewise, it’s not uncommon for gas, electricity and water service providers to offer extensions or postponements for customers who need a little extra time to pay their bills (if you express a reliable intention to pay).
Similar options may be available for car loans, public and private student loans and other financing arrangements.
Be aware that payments are deferred, not wiped out, in most cases. So, any bills you temporarily offset now will need to be settled later. However, you may be able to extend your repayment term to accommodate the extra amount you owe or roll over unpaid amounts into future payment plans.
Forbearance and deferrals can be a welcome source of relief when life hits. But make sure you understand how these choices will impact your future budget. Don’t sign up for any modified payment schemes you can’t handle down the road.
No one wants to be stuck with an income tax bill. That’s why many employees opt to deduct a little more than necessary every paycheck and receive the excess as a refund when they file their annual tax returns.
But every dollar counts when you’re in a financial squeeze, so it might be worthwhile to contact your employer and reduce your income tax withholdings to the required amount and no more.
The difference may not seem big, but it can add up more than you think.
For example, reducing your income tax deductions by $50 per month puts $600 more in your pocket every year for gas, groceries, medical expenses or any other costs.
Don’t try to deduct less than the required amount of income tax, or you’ll be hit with a bill when you file your annual tax return. But eliminating excess tax payments means you’ll have more in your pocket to meet your most pressing needs.
The average US household spends $69 per month on streaming, according to Deloitte. That adds up to $828 per year.
Netflix, Amazon Prime, HBO and Disney+ are among the most popular video streaming platforms. Spotify is the most popular music streaming platform in the US, while Amazon Music and Apple Music/iTunes are also widely used.
Take a close look at the platforms you pay for. How many do you use regularly?
Subscriptions may seem like permanent commitments. But you can add or drop them on rotation, signing up for one platform, then canceling your subscription after a month or two and signing up for another platform to watch different shows.
Doing so could potentially save you hundreds of dollars per year without permanently sacrificing your access to entire libraries of entertainment.
Grocery prices in the US rose more in April than in any other month over the past four years. In Canada, grocery costs have risen 22% since 2022, with price changes accelerating especially toward the end of 2025 and into 2026.
Food is a must in any household budget. But you may not have to spend as much as you think on groceries if you hunt down bargains on unsold or nearly-expired food at local stores and restaurants.
That’s where apps like Flashfood and Too Good To Go come in handy. Available for Android and iOS devices, these apps let you browse and purchase discounted food for pick up at nearby partner stores.
These types of services typically don’t charge a fee to sign up. But there may be a small fee of up to several dollars per order, which can be worth it given that you’ll find food discounts of up to 50% or more.
Spending some of your spare time on profitable activities can help take your mind off your financial worries and put a little more in your pocket.
Not all side hustles involve massive upfront efforts to start your own business. Simple ways to earn money range from getting paid for small tasks (like playing games, watching videos or completing surveys) to earning cash rewards for signing up for new products or services.
If you have enough free time and energy, you could become an online tutor, content creator, virtual assistant or remote call center representative.
Many side hustles don’t pay enough to sustain a household, and some require a lot of time and consistency to yield a profit. While your side gig may not radically increase your household income, it may help you stay afloat when costs rise or unexpected financial events occur.
Going into debt may seem unwise when your budget refuses to balance, given that the cost of debt (including interest and fees) can intensify your financial load.
However, low-cost debt can also let you spread out important costs that are difficult to afford up front.
If you’re in the market for a new vehicle, some dealers and manufacturers offer 0% financing. Credit cards occasionally run no-interest or low-interest balance transfer promotions for new customers who transfer existing balances from other cards. A number of lenders offer small loans that can be used like an overdraft when unforeseen expenses arise.
With no-interest or low-interest credit, you’ll typically be hit with higher interest rates if you don’t fully repay your debt after a limited time, often ranging from one month to a year or more.
Affordable financing can help responsible borrowers who repay their debt within a short time frame. However, those who struggle with debt and financial management should steer clear of this option and instead focus on solutions that work with the resources they already have.
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