Most of the time, people who get behind on bills, have not made their budget plans so far and to be honest it is very tough to be there. Things get out of your hands, every bill is getting delayed and while trying to catch up on one thing you keep on losing another. Late payments could drag you to add on to your already existing credit card.
Delaying bills shouldn’t be carried over to your next billing cycle to avoid credit card high-interest rates that can get excessively expensive if not paid in full by the due date. However, it is still possible to catch up with your bills. You just need to put your concentration into the line of order and stick to what you plan. You have to work on bigger savings and less spending. Follow the top effective money-saving tips when you are behind on bills and here’s how to do it.
1. List down the bills that are due
Your home rent, instalments, utility bills, credit card payments and any other loans. List them on a sheet with their due dates and value the amount you can pay for now. Look for a little flexibility in your bill payment schedule. You especially need to do this if you think your account will be going negative very soon. As for a few more days’ leverage. Let’s say your landlord will accept to receive rent in 5 to 10 days, you can pay him from your next month’s pay. Talk to your creditors and talk to them. Communication does a lot better. If the creditors can reduce the interest or extend a few months.
2. Find the money to cover them up
Look into your house. If anything you can sell to cover up the expenses. You’re newly bought car, or mortgage a garage if it’s not in use. You can simply rent your upper portion of the house or rent the room in your apartment. For the immediate purpose, ask your relative or friend to whom you can return the money with at least no interest so you won’t get more burdened. You probably cannot ask the bank to give you a loan because your credit cards are already not paid. So, borrowing from a friend or relative is quite a better option unless you have good terms with them.
3. Specify your expenses… for a month
Create a list of all the expenses you make in a month. From the food you order to cover up your late-night cravings to the last detergent you bought for dishwashing. After putting them in front of you, reduce them as much as you can. Cut down your extra clothes, makeup accessories, gifts and also weekend parties. There’s no need for such a thing that isn’t necessary. You can live on food cooked at home, few clothes to wear, and travel by public transport.
4. Make more savings
Create savings for your rough days. After cutting off your unnecessary expenses, keep the rest of the amount for savings. You will need it for paying your loans and clearing off bills. The least utilities should be used at home. Making sure to switch off extra lights and fans when not in use. Turn off the stove to save gas, and close the tap when you are not using it. Wasting anything is also not a good thing so why not practice saving for our own good. Don’t include candies, chocolates, cereals and extra items in your basket. Only add the food items that are healthy to eat and not too expensive like vegetables, fruits, lentils, sometimes meat and wheat. Expending less and saving more is the all-time best theory for creating budgets.
Try to save money every time you going to spend, the best way to save more while you’re on shopping are coupon codes and promotional sales. A good friend of us work at DiscountCodez, a coupon and promotional deals website. Where you can easily find discount coupons for almost every store around the globe and save up to 20% to 50% off every time you visit them.
5. Find a second job
You are already doing a 9 to 5 job. You still have room for another job, part-time or full night time if your health can afford it. Many people do this. In the start, there is a struggle and by the time they are promoted and continue with their one job only. You need to be tough with your schedule, compromise on your rest and other activities. If you are spending a long time with family or going for a jog you need to keep it aside for a while. The job is tough but it’s worth it.
6. Pay off your credit bills
Now you are creating money from double streams. You have savings and as well as more money than before. Don’t go bananas now with the lots of money you will be having then. Start paying off your credit bills. This was the correct time to do this. Delaying will cause you more interest in money. Month by month set a budget for the loan first and distribute the rest into your other expenses. Gradually you will be free from this bill too.
7. Stop using credit cards
Credit cards make shopping easy, but after all the struggle do you think they are worth keeping in use. They create more expense, drown a person in loans and once it starts the person keeps drowning. Though these cards made lives much easier there are a lot of alternatives you can use to go on with the accessibility you were desiring and no need to pay expensively high rates on credit card billings. A debit card is the best solution. It does not allow you to use the bank’s money for shopping. You are spending your own money. So it keeps you away from the bugs and you will spend with care, knowing it is your hard-earned money.
8. Open a savings account
A Savings account holds your money securely into their account and helps you earn a little interest on it every month. That way your money will be deposited in a secured location. If you keep the money at home, you would know that you have money and you can spend it any time you want. But when it’s with the bank you will not think of using it to make your expenses. Therefore, a little interest will help you make up with your billings for the month and increase your financial requirement in case of an emergency.
Author Bio:
Asjad Addy a passionate and enthusiastic writer. He’s a student of computer science and perusing his career as a content writer. Currently, he’s writing for multiple websites and blogs. The most recent article he wrote for Markets Secret.
When he isn’t glued to his computer screen, he plays cricket, learns new languages, and workout. He’s currently working as a freelance writer. He loves hiking and visits new places. You can reach him on Twitter or Facebook
