What To Do When You’re Behind on Bills

What To Do When You’re Behind on Bills

If you’re feeling financial strain, here’s what to do when you’re behind on bills so you don’t feel overwhelmed by debt.

For most people with a mid-level income, falling behind on bills once in a while or often isn’t too unusual. Salaries and wages might come in a bit, which can leave you in a hapless position even if it’s not your fault.

But the good news: Even if you find yourself behind on bills, it’s not impossible to overcome and prevent such situations.

If you’re someone who has a limited income and looking for a guideline on what to do when you’re constantly finding yourself falling behind on bills, I’m here to help.

As you might know, I am a bestselling wellness author with about 2 million books sold globally.

Plus I founded a groundbreaking video course called The Anxiety Cure.

I love sharing insights and strategies to help people to be happier and calmer – especially during challenging times.

So I put together this article with the most important things to know when you’re behind on bills.

What To Do When You’re Behind on Bills

1. Set Priorities

The first thing you need to do if you have a limited income and want to avoid falling behind on bills is set your financial priorities straight. In all honesty, the reason most people find themselves falling behind on rent and bills is because of uncontrolled spending. Without prioritizing your expenses, you’ll never be able to catch up with your bills.

When prioritizing your expenses, focus on the essentials first- rent, bills, food, and transportation. These expenses will eat up the majority of your monthly income, but you can’t lead a bare minimum lifestyle without paying them. Any money that you have left after accounting for these expenses can be spent on entertainment, hobbies, dates, etc.

If you have a family and children, prioritizing your expenses becomes even more important since family members often equate to unexpected situations. This naturally means that your personal entertainment and hobbies will often end up taking a hit. But if you plan your finances properly this shouldn’t be too big of an issue.

Don’t hang on to the money allotted for the priority expenses for too long as you might end up spending it intentionally or unintentionally. Try to pay your bills and rent within a fixed date to avoid falling behind on them. Maintain a schedule on your calendar if you have a tendency to forget important dates.

2. Call Your Creditors

Another key reason many people fall behind on their bills is loans. When you take a loan it automatically puts a recurring pressure on your finances on a monthly income. This can be made worse when the interest rates on loans start to kick in.

Depending on the amount as well as the terms and conditions of the loan you can end up having a really rough time.

The smartest and most advisable thing to minimize your monthly payments on loans is calling your creditors and renegotiating with them.

If you’re not particularly good at negotiating there are many finance agencies that provide this service.

The best way to avoid taking loans on furniture, gadgets, and other stuff is opting for buy now pay later options.

Or you can explore a phone installment loan.

Refinancing your home loan is another way to help access any existing equity you may have or consolidate your existing debts. For more information, check out this home loan refinancing guide by Joust.

Unnecessary services and subscriptions are also things that can be a problematic element if you’re trying to beat back loans and pay your bills on time at the same time.

Think deeply and consider whether that cable TV or Xbox subscription is worth paying when you’re already having to juggle with so many expenses and make your decision.  

3. Explore Extra Income

Earning more to keep up with your expenses is also a very valid way to keep up with your bills on time.  How you choose to earn some extra cash depends a lot on your current career and situation in life.

For example, if you don’t have a loan to pay and just want to make sure you’re not falling behind your bills, a part-time job can be just what you need.

But on the other hand, if you have a loan to pay or have a family, then a part-time job simply won’t cut it. Instead you can set up a small eCommerce business or offer freelancing services.  Or you can be an affiliate for companies like mine and earn more money without going out of your comfort zone. If your current job is too restrictive to make space for additional income, you might want to consider switching jobs to find a balance.

Selling old stuff is also an excellent way to make some extra cash. But unlike a part-time job or side-business, this is not a recurring income source.

Making Sound Financial Decisions

Falling behind on bills is a situation no one wants to deal with or find themselves in if it can be helped. But if you do find yourself in such a situation, following the tips above should provide you with a solid basis on how to tackle the situation. Just play your cards right and you’ll be able to overcome the tendency to fall behind on bills.

Stay Calm During Stressful Times

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