Getting Your Finances Back on Track

Getting Your Finances Back on Track

What to do if you fall behind on bills.

If you fall behind on bills, it’s not the end of the world. The important thing to know is that you’re not alone and not to panic. Getting back on track may be easier than you realize. Here are a few things you can do:

List Your Expenses

First, list all of your bills. Include the due date, the balance, and any interest rates. Be thorough and list everything. You don’t want to accidentally forget one of them.

Cut Your Budget

Now go through your budget and trim the fat. Cut back on non-essentials like entertainment and dining out. Make a note of how much “extra money” that frees up so you can use that money to pay off your bills.

Prioritize Your Bills

Now that you know how much “extra money” you have, go through your overdue bills and prioritize them. The priority should be:

  1. Living essentials. This includes all the things you need to run your household day-to-day like housing, food, utilities, and transportation.
  2. Debt payments. Once your household is stable, focus on paying down debt that accrues interest.
  3. Other payments. If you have money left over after essentials and debt payments, start paying off other bills, starting with the oldest first.

Make Some Calls

Your next action item is to contact the companies and lenders. Almost any company will be willing to work with you on some sort of payment plan. These companies want your money, so they’ll be happy to get some of it over time if they can’t get all of it at once.

Do One Thing: Contact the places where you are behind on your bills. You will almost always get some sort of deal worked out.

Chris O'Shea

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