Getting behind on bills can be the result of job loss or poor financial habits. Regardless of how it happens, it happens to almost everyone at least once. Thankfully, there are things you can do to get back on track. Let’s take a closer look at how to budget when you’re behind on bills.
First things first. You need to call your creditors ASAP. The longer you go without making a payment, the worse it will be. If you call your creditors and explain your situation, many will be willing to work with you. Nothing can be done if you choose to avoid your creditors. Always be proactive in reaching out and seeing what help is available.
Look for Ways to Cut Back
There are always expenses that can be cut from your budget. If you’re not under contracts, get rid of your cable or satellite bill and overpriced cellphone plan. Companies like Straight Talk are much more affordable. You can also cut going out on the weekends or eating out during the week. It may seem like you’re cutting out all the fun things in your life, but you need to make sacrifices to get back on track.
Prioritize Your Bills
Next, if you don’t have enough money for all your bills, you need to prioritize your expenses. Obviously, you must pay your mortgage/rent, electricity and water bills, and have enough money to buy food. Subscription services and memberships should be at the bottom of your list. Anything that does not have to be paid should be at the bottom.
If possible, consolidate your debt so that you only have to make one payment per month. This can help a number of people get back on track. Consolidating can help you go from paying multiple payments that add up to over $500 down to one payment of $300. Once you get back on track financially, you can then up your payment and pay off all your debt.
Create Additional Income
Last, but not least, look for ways to create additional income. It might be selling things from around your home or taking on a part-time job. It really depends on how long you feel your situation will last. If your situation is temporary, having a yard sale may be enough to make a big difference.
Everyone gets behind on their bills from time to time. It happens. The important thing is working to get back on track. Call your creditors, prioritize your bills, and look for additional income. With hard work, you’ll be back on track in no time.