5 Ways to Get Back on Track When Behind on Your Bills

Falling behind on your bills seems to be easier than ever these days. Getting bills back on track is something many people are trying to figure out so that once the economy does bounce back, they are not stuck with horrible credit and no place to turn. There are a few different things that you can do to help you get back on track, but you need to make sure you are being attentive to your bills and not pushing them aside. Give these tips a try and see how quickly you can get your bills back under control.

Tip #1: Get a Credit Check

It’s never too late to get your credit checked. Even if you haven’t done this in years, it’s still important. It may be one of the most important steps when trying to get your bills back on track because this will show you how much you owe and who you owe it to. You should also go through and make sure that only accurate information is on your credit report.  This should be something you do often, meaning at least once every calendar year. Ideally you should go through and monitor your credit weekly so that you know exactly what money you need to pay off each of your bills on time.

Tip #2: Know Your Due Dates

Paying your bills on time is essential when trying to get them back on track. This is because every late payment has two negatives. First, the late payment can be reported to the credit bureau and can damage your credit. Second, each late payment can be accompanied by a late payment, thus increasing what you owe and making it harder to get your bills in line. If you pay your bills on time, meaning on or before the date they are due, then you will bypass late fees and higher interest rates that could come back to haunt you.

Tip #3: Budget Your Finances

Write down exactly what you spend your money on and take out those items you don’t actually need. Make sure you include all of your bills and your luxury purchases so that you can see where you truly stand. From there, cut out what you don’t need, and cut out 75% or more of the things you want, and see how much money you have left over. Now, use this new money to apply towards paying down your bills until they are back on track. This will let you pay back your bills without falling behind on any other bills in the process.

Tip #4: Plan Ahead

Planning ahead is something most people need to do more of. One way of doing this is by establishing an emergency fund. This is a savings account that is only touched when an emergency arises, such as a major health crisis or unavoidable car repair that you need in order to make it to work. As soon as any money goes out of this fund, you should add it to your list of bills to replace.

Tip #5: Continue Saving

It may sound counter-intuitive, but setting aside a little money into savings each month will allow you to be ready for little changes that were not in your budget. Maybe one month you stayed home sick from work for a day or two. While you may not have been paid for those missed days, you can make up the difference from your savings without falling behind on any bills due to the lack of income. Your bills can get back on track with some determination and planning. Don’t let one lapse in bills deter you from working to get your financial life back in order.

Finances - 2 Oct, 2013 - No Comments