It’s not always easy to get ahead of bills. After all, the cost of living is continuing to increase while wages are remaining quite stagnant. But, if you find that big bills keep rolling in and all of your money is rolling out, it might be time to take action. Bills for your accommodation and utilities must be paid. So, what happens if yet another one has turned up that you can’t pay in full?
Talk To Them
It’s important you speak to the companies that are chasing you for money. If you can’t pay for any reason, you must let them know. Sometimes companies like this are willing to give you a payment arrangement to help you make more manageable contributions to the overall debt. But if this keeps happening, you might try their patience a little too much. Always offer to pay something to avoid further action that could be quite serious for you financially.
Borrow To Pay In Full
Once the threats have come in, you know you don’t have much time to clear what you owe. If you can’t borrow from friends or family, you might need to try a formal short term lender to help you to get by until payday. Of course, as payday comes around, you’ll have to live on a reduced income for that month. This might leave you short for any other bills that come in during this period. If you’re going to borrow more, now really is the time to overhaul your monthly budget.
In an ideal world, you can manage your finances so well that you never find yourself short of cash when an unexpected big bill comes in. This might be a large utility bill due to recent cold weather. Or maybe your car has broken down? Savings accounts are the ideal buffer when something like this happens. It saves you from having to borrow anything, and you won’t need to be late for any payments. Budgeting for savings each month, when you’re on a low income, isn’t easy, but it isn’t impossible either.
Try to get a month ahead if you can. You might have to start slowly to build up some cash, but once you’re there, you simply need to maintain it. Whatever you can save should be put away for emergencies, so you’re never caught out in this situation again. To determine exactly how much you can save, you need to complete a budget template. Rather than detailing what you have been spending, it’s time to clarify the bare minimum spend you can survive on.
Many people mistakenly believe that frugal living means you have to go without. Yes, there might be the odd sacrifice, especially if you’re used to a lavish lifestyle. It’s about spending only when necessary. It’s also about putting money aside for different purposes. You might have an emergencies fund for that untimely car breakdown, and you might also have a Saturday night pizza fund. Make sure you’re not spending more than you earn and keep a close eye on your cash.