Detroiters skip bills, go without basics — and still can’t make ends meet

This story is part of Outlier Media’s Affording Detroit series exploring the real costs of living in the city.

What do you do when the bills are due, and you come up short?

For many Detroiters, struggling to pay for the basics — housing, utilities, groceries, transportation and child care — is the norm. Costs start adding up, and residents have to find creative ways to make ends meet. For some, that just means going without.

Outlier Media surveyed readers to ask about their most unmanageable expenses and how they make their pennies stretch. We received 42 self-selected responses from Detroit residents.

The results show how people “rob Peter to pay Paul” to cover basic costs, challenging the age-old cliché that Detroit is a cheap place to live.

“I pay (for housing) now what I did in Pilsen and the Gold Coast neighborhoods of Chicago in 2019 for less pay, worse amenities and inefficient public transportation,” one reader wrote. “It’s not worth it to live here anymore, but I’m trapped. I can’t afford to save to move.”

Where does the money go?

We asked residents to estimate the number of months of the year they typically fall short on bills. More than a third said that’s never the case. However, more than a quarter of respondents said they fell behind on bills six months of the year or more, and about 12% said they come up short on their bills every month.

Car insurance was listed as one of the most burdensome expenses by more than half of respondents. Most residents need access to a car due to the city’s unreliable public transportation , but many find it difficult to pay the associated costs. At $5,300 a year, or roughly $441 a month, the average Detroit car insurance premium is the highest of any major U.S. city.

“Car insurance always feels like the wildcard,” one respondent wrote. “It seems to go up every six months, even though I’m not making any claims.”

Another respondent said they moved closer to work because they couldn’t afford their car.

“I had to sell my car because I couldn’t afford insurance payments at $300/month for base coverage (no collision),” they wrote.

Housing was the second-most cited expense, with respondents mentioning rising rents, property taxes and homeowners’ insurance.

“The rent costs are insane,” one Detroiter wrote. “The city of Detroit wants to attract young talent, yet, the young talent can’t afford to live in Detroit proper. Not alone. And as a somewhat younger resident, I’d like to live in the city I was raised in comfortably.”

Respondents also frequently pointed to high utility bills, with several describing monthly bills more than $300. Many said they sometimes receive unexpectedly high bills from DTE Energy, which has requested rate hikes almost every year, despite unreliable service .

Pragmatically past due

When the bills start adding up, some respondents seemed to feel helpless. “Luck,” “pray” and “Lmaooooo” were a few of the answers to how they manage expenses.

Nearly 1 in 5 said they strategically made partial or late payments on bills based on how necessary the service is and the consequence for late payment. Housing, car and utility costs were often prioritized over phone, water and credit card bills.

Our survey did not require respondents to share their income, but some mentioned struggling even with a well-paying job.

One respondent said they always pay their rent, car note and insurance. “But for everything leftover I often have to skip payments, make partial payments, put them off until they threaten shutoff, run up my credit card, etc.”

Cutting costs across the board

Respondents described taking second or odd jobs and living with roommates or family as some of the ways they lowered expenses. They described driving as little as possible and forgoing insurance to cut transportation costs. They mentioned keeping the heat set low, unplugging appliances and turning lights off to reduce utility bills.

Respondents listed various smaller money-saving strategies, including attending free events, handwashing clothes, thrift shopping, using coupons, doing their own car maintenance, relying on free street parking and getting food from neighbors or community gardens. Respondents also cut spending on entertainment, travel, home maintenance, prescription medications and food.

“No matter how much I ‘downgrade’ on quantity and quality, expenditures remain the same,” one wrote. “Unaffordable. Unsustainable.”

Multiple respondents were also aware of or had used free or discount food programs , bill payment plans and other forms of assistance. But they also described difficulties finding and accessing benefits, or not qualifying for income-restricted programs.

Filling the gaps

One thing Detroiters do rely on to navigate burdensome expenses and inaccessible assistance programs? Each other .

“Share information with others in your family and neighborhood,” one respondent advised.

“Collectively share resources, rent tools, ask for help,” wrote another. “Detroit is the place it is because of the community filling the gaps and disparities where most cities rely on public services and governmental support. Detroit’s communities and mutual aid are what run this city.”

Detroiters skip bills, go without basics — and still can’t make ends meet · Outlier Media