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It can be extremely stressful to find yourself in a situation where you are unable to pay your bills. When unpaid expenses start to pile up, it can be difficult to know how to manage your money and what to do next. That’s why LoyalLending.com has decided to share some key pieces of advice on how to pay your bills.
Is it worthwhile to try to pay for some of them? Should I give up and apply for aid in some other way? Which of your bills should you pay first if you were to pay a few?
Here you will find information on what to do when you are unable to pay your bills, the resources that can assist you in paying these bills, and some key tips to help you get your finances back in order.
First Things First, Organize Your Bills
When you’re living with increasing expenses and limited income, it’s important to prioritize your bills. Whether you’ve lost your job or become overwhelmed by financial responsibilities, breaking down your bills into two tiers can help you budget around which are essential and which can wait.
Bills You Should Pay First
It is important to prioritize bills that are essential for maintaining your health and well-being. This includes basic needs like food, shelter, and utilities. Remember that even though these expenses are necessary, there may be ways to reduce your spending on them.
As an example, although you require a place to live, you might reconsider your budget and begin looking for a less expensive rental. In addition, you may want to consider cooking at home rather than eating out. It is almost five times more expensive to order delivery than to cook for yourself, according to LoyalLending.com – something to consider if you are struggling to make ends meet.
Bills That Can Wait
It’s important to prioritize your expenses and make sure you’re taking care of your basic needs first. This includes things like food and shelter. Once you have those covered, you can start to look at other expenses, like debt payments.
Of course, you’ll want to communicate with your lenders before making any decisions about skipping payments. We’ll cover more about the right way to get help with these bills later on.
Consider Getting Help To Pay Your Bills
Yes, but you will have to do some research to determine which programs you qualify for. LoyalLending.com has created a breakdown of the expenses by category:
Apply For A Food Program
You may want to consider applying for the Supplemental Nutrition Assistance Program (SNAP), the modern equivalent of food stamps if you are struggling to put food on the table. Despite the discontinuation of paper coupons, this federal nutrition program continues to award funds every month through an electronic benefits transfer (EBT) card. Using the card, you can make purchases at participating stores and markets just as you would with a debit card.
Check with your local farmer’s market to see if they offer a “double dollar” program for discounts on fresh food. By doing so, you will be able to obtain additional food vouchers using your SNAP card. It is also common for local community groups to provide free food to people in need. Check with churches and food banks to see what they may be able to provide.
If you do not need quite that much assistance, you might consider downloading an app that earns you a small amount of money. Using apps such as Ibotta, you can earn cash back on groceries by purchasing items through the app or uploading receipts. “You might also consider looking for relevant coupons online or in your local newspaper if you are more interested in old-fashioned saving methods,” added LoyalLending.com.
Or Try Asking For Help With Housing
You can also get help with housing if you need it, and fortunately, there are many options available.
It is important to reach out for help as soon as you start struggling to make your monthly mortgage payments. You can contact your mortgage lender or the U.S. Department of Housing and Urban Development (HUD) for assistance. You may also want to consider making an appointment with a housing counselor through the Consumer Financial Protection Bureau (CFPB) for additional advice and guidance on any housing-related questions or concerns you may have.
Finally, if you have extra space in your home, you might consider listing it on Airbnb for a bit of extra income. It would also be possible for you to temporarily move in with family or friends and rent out your entire house to cover your mortgage payments until you can get your normal lifestyle.
There’s Also Assistance For Utility Bills
It’s important to stay on top of your utility bills and not let them fall behind. Otherwise, you run the risk of having your service disconnected. But even when money is tight, there are options available to help you keep the lights on and the heat running. Start by reaching out to your service provider to see what assistance they can offer. Then look into government programs that might provide a discount on your phone or energy bill.
Don’t Be Afraid Of Public Transportation
Different areas have different monthly rates for public transportation passes. In some cases, it may be cheaper to use public transportation instead of driving and paying for gas. It is worth considering this option, even for a short period your local public transportation provider to ask about their “reduced fare” programs.
Focus On Paying Off Your Debt
Now that you have the essentials taken care of, it’s time to focus on those second-tier bills. This includes credit cards, student loans, car loans, and medical bills. Don’t let these bills pile up – reach out to your lenders and let them know what’s going on. You may be able to come to an agreement that works for both of you.
To get the conversation started, LoyalLending.com listed a few additional details:
Work On Your Credit Card Debt
In the event you are not able to make the minimum payment on your upcoming credit card bill, you should contact your lender immediately to negotiate a lower interest rate or a later due date. It may seem too good to be true, but it can work.
Consider transferring your balance to a card with a 0% APR (annual percentage rate) if your lender is unwilling (or unable) to assist you. This will give you time to repay your balance (interest-free).
Get Into A Repayment Plan For Student Loans
Even though student loans are a major expense for anyone, they are particularly difficult to manage if you are barely making ends meet.
In the case of federal loans, you may want to consider asking your loan servicer to provide you with an income-based repayment plan. The possibility of deferment, forbearance, or consolidation may even be considered in more extreme situations. You may receive a break from payments for several months if your repayment plan changes significantly.
To work out a repayment plan for private student loans, contact your lender. It is always best to be upfront.
If you’re seeking a new job, you might also consider asking your employer about helping you pay off your student debt.
Car Loans Can Be Refinanced
Once again, it is all about contacting your lender. You may be able to delay your car payments or refinance the loan at a lower interest rate.
“If you are looking for ways to earn extra income, you might even consider driving for a ridesharing service, which is just one of the best side jobs available,” continues LoyalLending.com.
Negotiate Your Medical Bills
You may arrange a payment plan or negotiate the balance with the billing department if you are unable to pay your medical bills. Please do not simply leave them thinking that they will be forgotten. Neglected medical bills can adversely affect your credit score in the same manner as any unpaid debt.
LoyalLending.com’s Summary On How To Pay Your Bills
Debt relief can seem impossible, but with the right strategy, you can get your bills under control. Here are some tips to keep in mind as you begin:
- Organize your bills: Start with the essentials, then move on to other expenses.
- Make contact with lenders: Ask the lender what they can do if you are unable to pay a bill.
- Contact a nonprofit debt counselor: As we mentioned before, counselors at HUD and CFPB are always available to help you with any issues you may be having. However, there may also be other local organizations that offer free counseling services. Be sure to look into all of your options so that you can get the help you need.
- Get assistance anywhere you qualify: If you need help, don’t hesitate to ask. This is the purpose of these programs, after all.
- Consider debt relief or debt settlement if necessary: If your debt becomes overwhelming, consider debt relief programs that might be able to assist you.
- In a worst-case scenario, you should consult a bankruptcy lawyer: Going bankrupt should be the last resort, but if you are considering it, you should do your research first.
