What to do when you’re falling behind on bills
If you are falling behind on bills, you’re not alone, especially during this pandemic. About 46% of consumers paid a bill late, because they forgot to pay the bill, were short of money or for another reason in the last 12 months. Another six in 10 Americans are anxious about bills, according to a survey of 2,425 U.S. consumers conducted by Aite Group. While falling behind on bills is not uncommon, it can come with long-term negative consequences. Here are five simple steps to help you catch up on debt and prevent you from falling behind on bills.
1. Calculate how much you owe
If you’re falling behind on bills, your issue may be lack of organization. When life gets busy, it can be easy to lose track of bills. Set time aside to go through your expenses and determine how much debt you owe to which companies. Common bills are:
- Credit cards
- Student loans
- Car payments
- Dining out
- Gym memberships
- Monthly memberships
- App fees
- Personal loans
Take an inventory of your debt and compare it to how much you earn in income each month.
2. Set up auto pay
If you’re falling behind on bills, because you are forgetting to make payments there are quick ways to get organized. Stop putting off setting up online bill payments. If auto pay is an option, opt in to having money automatically deducted from your account. Set calendar reminders on your cell phone and desktop. Make payments early. You don’t have to wait until the due date. If you remember a bill, log in and pay it.
3. Make any necessary cuts
If you are falling behind on bills, because you have more expenses than income, it’s time to adjust your spending. Go through your monthly, quarterly and annual bills and see what you can cut. You may have memberships you can live without like streaming services or the gym.
4. Make changes to due dates
Some creditors will allow you to change your billing due date. If all of your bills are due at the beginning of the month, it can drain your bank account quickly. See if you can split your bills between paychecks. Many companies are willing to shift your payment due dates.
5. Take on a side gig
One way to catch up on bills quickly is to take on a little extra work. Not everyone has the time to take on side work, but if you do, you can put all the extra funds towards bills or debt. Some examples of side gigs include delivery driver, freelance writer, ride share driver, social media manager, tutor or babysitter.
Don’t fall behind on bills. You could end up owing more overall or damage your credit. Brighter Pays can help you get a personal loan up to $10,000. Learn more today.
This post is not intended to be a solicitation for a loan. Brighter Pays provides these blogs for entertainment and informational purposes only. Remember to consider all your financial options before making any decisions related to credit.