What To Do If You Are Behind On Paying The Bills
Some incredible has happened: you have fallen behind on your bills. You are no longer able to make your minimum monthly payment. Collectors have started bothering you. You feel a nervous twist in your stomach each time the phone rings.
What should you do?
Here are a few tips to help you if you have fallen behind on your bills:
1. Make a Budget.
This sounds very basic, but it’s important. Gather all of your monthly bills into one place.
Write down the amount due so you know exactly how much money you’re compelled to pay each month. These are your “fixed expenses.” They are the regular, unchanging overhead associated with your life.
Review your variable cost-of-living expenses from the past several months as well. Look through the past few months’ worth of credit or debit card statements to see how much you spend on groceries, electricity, gasoline, water, and other necessities. These are “variable expenses,” but they’re also necessary.
These budgeting worksheets will help you figure out how much money you need to spend in order to stay afloat.
2. Evaluate Which Bills You Have Fallen Behind On.
Chances are there are some bills that you are keeping up with, such as groceries, but other bills that you have fallen behind on, like your car loan or your credit card.
Usually, people prioritize paying bills for items that they appreciate (such as food) but try to avoid paying bills for items that they dislike (such as medical expenses).
Take a note of which accounts you have fallen behind on, and see if you can find a pattern.