Getting behind on your bills is a frustrating and stressful issue. Many Hpustonians live paycheck to paycheck, leaving very little room for unforeseen circumstances. It also means if you make a few poor choices, you can easily find yourself in the hole. While there is a lot of information out there about fixing your credit, saving over the long-term or creating a budget, sometimes it’s best to start at the root of the problem—managing your bills. Your budget, savings and credit all are secondary to making sure you know what your bills you are, and having a workable strategy to get them paid. For vehicle owners, this is imperative, especially if you’re at risk of repossession. For anyone who relies on a car for transportation, it's more important than ever to get and keep things under control. Here are some tips for managing your bills so you can focus on the bigger financial picture and start to live your life a little more stress-free.
Organize your Bills
It’s hard to take control of something if you don’t have the scope. The first thing you’ll need to do is gather up all your bills. Check paper piles, emails or anywhere bills may be lurking. Here are your next steps:
- Make a list of every bill; add a due date next to each
- Highlight any bills that are past due or behind; you’ll want to make these a priority and contact the companies asap, especially your car lender
- Remember to add bills that are annual, biannual or quarterly (for example license tabs, taxes, insurance)
You’ll want to make the calls to any company you’re behind on paying right away. Putting it off only distances your chances of having the company work with you to catch up. A lot of times they can work with your budget, but not if they don’t know what’s going on. If it’s your car, that call may stop the repossession process.
Create a Strategy
Having a plan and goals that you check in with on a regular basis is essential for your success. Start by taking all the bills you’ve organized and divide them by due date. If you get paid a couple times a month, great, you can pay half the bills with one paycheck and the other half with the second. If you only get paid once a month, be prepared to make sure you always have enough to cover your bills, or even pay them early so you don’t spend the money on something else. If you’ve never made a bill-pay plan before, here are some ways you can do it:
- An Excel spreadsheet – This is good for tech-savvy computer people. List company, amount, due date. Date it again when you’ve paid, and add bills as you go along. Or you can use YouTube to watch a video on how to make an Excel bill schedule.
- Use a printable template – A lot of people who want to help. They write articles, blogs and put free templates out there on the web for paying your bills. Go find one that works for you.
- Use a calendar – Buy a twelve-month wall calendar (or print one for free) and write down bills on the month/date they’re due and the amount if you have it. Check them off when you’ve paid.
- Keep a ledger or journal – Some people do better when they physically write things down. If this is you, keep a ledger or journal with your ongoing bills. Add when they’re due and mark or highlight when they’ve been paid.
- Go online – Services like MoneyStream will do a lot of the work for you. Research the numerous apps and online tools that can help you get things paid on time.
If You’re Way Behind on Bills, Prioritize
It happens to the best of people—you get behind. If that’s where you’re at, you need to prioritize. Put your bills in order of importance; think about rent, food, car, utilities. Also find out which bills you can defer. The most crucial thing is: don’t dig deeper into the hole! Go on a financial diet so you can get back on schedule. Shop smart, reduce expenses, take a second job or sell things. Once you’ve caught up, you can work on designing a thoughtful budget and eradicating old debt all while paying your bills on time.
Moving Forward
The good news is once you have everything under control, and you’ve avoided repossession, you can move forward in a positive, organized way. Remember to keep your bills, bill-pay system, goals and strategies in one place. Design a budget that allows you to get ahead. Take pride in your accomplishments. Start paying off old debt while saving. Before you know it, you’ll have an incredible financial picture.
