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Debt-Paying Advice For Those With Unsteady Income

Sanesh Mathew
·2-min read

Most of the advice relating to debt payments have been restricted to those who have a constant income. It can be fairly easy for someone with a consistent paycheck to clear his or her bills sooner or later.

But, what about someone with an unsteady income? How does someone who relies on commissions, or is self-employed, clear his or her debts considering the sporadic nature of the income they receive?

For people who don’t have a steady income, budgeting can be particularly troublesome since they have to meet regular expenses and also keep funds aside just in case they fall upon lean times. Due to the irregular income they receive, debt can be an extremely slippery slope to navigate.

However, this doesn’t mean that it isn’t possible. All it takes is a disciplined and different approach towards paying off any outstanding dues.

So, if you happen to earn an unsteady income, here are some ways you could manage your debts:

Build An Emergency Fund

As the saying goes, ‘prevention is better than cure’. If you don’t have a steady income, then it would be wise to focus on saving as much money as possible, as soon as possible. By building an emergency fund, you can deal with a financial crisis without adversely affecting your financial situation.

Micromanage Your Money

While those with steady salaries may find it easier to monitor their expenses, those earning an irregular income need to keep a closer watch on their expenditure. Keeping an eye on your expenses will help you rein in your spending and manage your money better.

Maintain A Pessimistic Approach Towards Spending Money

Even if you happened to go through a purple patch during which you earned a lot more than you normally do during other months, it doesn’t mean that you should go out there and start splurging.

Use the money to clear any existing debt you might have. The last thing you need is to keep carrying over outstanding dues, especially when you have the chance to get rid of them.

Maintain A Good Credit Score

Having a good Credit Score should top everyone’s priority list, irrespective of whether you have a steady income or not. If you don’t earn a steady income, lenders may be averse to sanctioning a loan or issuing a Credit Card. However, with a good Credit Score, there’s a good chance lenders may consider you eligible for any of their financial products.

Whether you have a steady income or not, you must embrace a long-term mindset and prepare a slow yet steady strategy to clear your debts. Financial freedom is within arm’s reach if you follow the tips mentioned above. Good luck! is India’s leading online marketplace for loans and credit cards.