Most people have felt overwhelmed by their monthly bills at one point or another. Whether it’s due to unexpected expenses, the rising cost of goods or simply overspending, bills can add up quickly.
If you’re falling behind on payments or unsure how you’re going to afford your monthly bills, consider the following strategies to help you get back on your feet.
Take a hard look at your spending
First, take a deep breath. Don’t panic. Remind yourself that you will find a way through this.
Then, look closely at your spending. Write down all your costs over the past few months, including any debt payments, rent, groceries and utilities. Which bills are the most expensive? What changes would make the biggest dent in your budget?
Tracking your spending will not only give you more insight into your financial habits, but it may also reveal some simple ways to tackle your bills right away, such as cutting down on entertainment, dining out, shopping for new clothes or other non-essentials.
You could also look into refinancing some of your debt. For example, if your car payments are high, you could consider getting a refinance car loan. Refinancing typically changes the length of your loan and the terms, which could help you lower your interest rate and your payments.
Create a better budget
Getting a handle on your bills may require creating better spending guidelines for yourself. If you already have a budget, look for small tweaks you could make to your monthly spending, such as cutting out your gym membership.
If you don’t have a budget, it’s time to create one. There are several different methods available — find a strategy that appeals to you or try a few and see which one works best. Here are three popular methods:
- Zero-based budgeting: Assign a role to every dollar of your income at the beginning of each pay period. Your essential bills, nice-to-haves, savings, retirement and any investments should all be included.
- The 50-30-20 method: Put 50% of your income toward your needs, 30% toward your wants and 20% toward your savings.
- The envelope method: Assign envelopes of cash to specific categories each month. The amount of cash you have in each envelope is all you can spend for that category until the end of the month or your next pay period. (Your larger monthly expenses, like rent or credit card bills, may still need to debit directly from your bank account.)
Increase your income
If possible, you might look into taking on additional work through a part-time job or side hustle with your earnings going toward paying down your bills. Freelance content creation, pet sitting, food delivery and tutoring are all possibilities. What types of skills do you have and where can you make time in your schedule to make some extra money? What might you enjoy doing for a few hours per week?
Reach out for support
Sometimes, asking for help is the best way forward, even when it’s hard. There are a few different people who might be able to offer support or at least act as a sounding board.
Creditors and lenders
Your creditors and lenders may be able to help you out. While it could be scary to admit you can’t afford your bills, sometimes you can negotiate them. Explain your situation and see if your lenders might be willing to lower your monthly payments or interest rate or waive late fees.
It’s important to create your budget before this step so that you know how much you could offer to pay each month if the creditor is willing to negotiate.
A credit counselor or financial advisor
If you don’t think you can resolve your problems on your own, a credit counselor or certified financial advisor may be able to help. With their support, you might be able to find achievable solutions and create a game plan to keep your bills in check.
Beyond lifestyle changes, budgeting ideas and reprioritizing your payments, they may also recommend consolidating your debts with a loan, especially if you have a lot of high-interest debt.
Family and friends
While the people who are closest to you may not have professional financial know-how, they can still listen. If you feel comfortable, share your worries, ask for their advice and see how their support makes a difference in your mindset going forward. Don’t feel like you have to navigate your financial worries on your own.
Small changes can help you get control of your bills
Getting a handle on your monthly bills can feel overwhelming, but taking small steps in the right direction could help you find a solution. Carefully examine your spending, stick to a budget, look for extra income, call your creditors and reach out for support where you can find it.
Notice: Information provided in this article is for information purposes only and does not necessarily reflect the views of valiantceo.com or its employees. Please be sure to consult your financial advisor about your financial circumstances and options. This site may receive compensation from advertisers for links to third-party websites.
