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Insights on money, career and trading

What Should You Do If You Are Behind On Your Bills?

Posted on May 24, 2015 by Daniel at 1:40 am

Sometimes keeping on top of your bills can be a nightmare. When the bills are high and there just isn’t enough money in the bank to pay them, it can be incredibly stressful.

Sometimes we think we are on top of our bills, and then an unexpected bill comes along and leaves us struggling for funds. You might not like the idea of not being able to pay your bills, but you are not alone. At some point or another, most people have got behind with a bill or two, so don’t worry.

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Image from Flickr

While it can be tempting to wallow, be proactive instead and start thinking about how you can get your finances back on track.

To help you get back on track with your bills, here are a few of our top tips:

Create a priority list

Sit down with the other people in the household and come up with a list of all the bills – put them in order of priority. Then work out how much you owe to each company when it needs to be paid by, and how urgent it is.

By coming up with a list of everything you owe, you will feel much calmer about the situation. Being able to see everything on paper will help you to get to grips with what you owe and what the next step should be.

Deal with tax

If you have managed to get behind on tax, that must be dealt with as a priority. Especially, as failure to pay tax can lead to a court summons, which obviously, isn’t what you want.

It might sound like taking a step backwards, but there are plenty of tax loans that could help you get back on track with your tax payments. As long as you go through a reputable company, getting a tax loan can be a great step to take.

Pick up the phone

Once you have created a list of all the bills you have to pay, the next step is to call each company and ask for help. You might not like the idea of admitting that financially you are struggling, but there is no need to be ashamed.

Don’t be afraid to explain to the companies, you owe money to what has happened. Believe it or not, most companies are very understanding. From the angry letters, you might think that when you call you will get shouted at, but the people who deal with debt, couldn’t be nicer.

Pay the bills off in small chunks

Don’t attempt to pay everything off at once. Otherwise, you will only end up getting yourself into more trouble. Most companies are happy for you to set up monthly payments of a small amount, just as long as you pay something; they don’t mind.

When you call each company you owe money to, ask them whether it would be okay to set up a monthly payment plan.

Although it can be scary when you haven’t got enough money to pay the bills, it’s important not to bury your head in the sand. Be proactive, come up with a list of bills that need paying and get organized. You will much better if you get all the bills straight.

 

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Insights on money, career and trading