I remember as if it were yesterday when I was in debt. I was so stressed from being behind paying my bills. The non-stop harassing phone calls, not sure what was going to happen and just feeling so overwhelmed during that time. I know other people have gone through what I have and can fully understand how horrible it feels when you are in debt and you don’t know what to do. And don’t know when things will get better.
There are people I know that are in debt right now are are wondering what they can do. I know from my experience there are things that have helped me. I have experience being in debt and getting out of it. I know things that can be done to help someone get caught up with their bills and even be ahead. I understand everyone has a different situation. My tips may or may not help.
What Can I Do When I’m Behind on My Bills?
I believe there is a solution to ever bad situation. And when I was in debt I knew there were things I can do to make things better. And I just had to find the solutions and figure things out. So that is exactly what I did.
Here are some tips that you can start following to help yourself get current or even ahead with your bills.
Figure out your income and expenses
Ok, before you go much further. You first need to figure out your income and expenses. You need to create an income and expense budget. Its very important that you create this right away. And you can always use this for other purposes in the future.
And remember to put everything in writing and don’t forget to add all of your expenses. Don’t leave anything out. Don’t just assume how much your expenses total up to. Figure out the exact amount of your expenses and your income.
Figure out your needs and wants
Yes, this can be very difficult to do. But its very important so you can get ahead of your finances. You need to honestly ask yourself what your needs and wants are. If you really can’t go without a certain product, then that will become a need. Otherwise, its really a want!
Now be careful because sometimes we mistake wants as needs. We can get brainwashed by ads on tv. Thinking something is a need when its just a want.
Prioritize all your needs
Your not finished just because you figured out what your needs are. You just started. You need to keep this in mind. You need to prioritize all your needs from most important to least important. You may need to sacrifice some of those needs over others if your needs cost more than your income. So write a list of all your needs from most important to least important.
Figuring out what your needs are is useless if your needs cost more than what you can afford.You will need to prioritize and sacrifice your needs. You will need to learn how to sacrifice now and have a better life later. So its not the other way around!
Find a higher paying job or do some side jobs
Now if you find that your needs are just growing more and more and you can’t sacrifice any of them, then its important to find a better job that pays higher or gives you more hours. This way you have more money in income so you don’t have to sacrifice very important needs.
Looking for a higher paying job will probably be the best solution to your financial problems. If you can’t find a job right away, there are other ways you can make some additional money.
These are called side jobs. And they can help you earn extra money every month! Some families live under one source of income. And they still manage to live comfortably because they earn extra money through blogging and doing surveys online.
Surveys are a great way to earn extra money. There are people making an extra $400/month on these survey sites:
- Cash Crate (Earn $100 per. month and earn $ for referrals)
- SwagBucks (Earn $125 per. month and earn $ for referrals)
- Inbox Dollars (Earn $150 per. month and earn $ for referrals)
- Vindale Research (Earn $200 per. month and $ for referrals)
- Opinion Outpost (Earn $50 per. month)
There are many bloggers that earn hundreds and even thousands of dollars every month. Some have been blogging for only a few month and have earned over a few thousand dollars. And they only spend about a couple hours a day on their blog and writing a couple posts a week! Some people want more money and so they write more and work more on their blog. This is really up to you and how much time you have to invest in your blog.
Want to start a blog and earn money from it?
This tutorial I made can help you. If you sign up using my link, you can have your blog for just $3.95/month through Bluehost. You’ll get a FREE domain for a whole year, WordPress Hosting, and more amazing stuff. If you’re nervous to start a blog, don’t be. We all feel that way when we start something new. But don’t you think having extra money will help you? It has helped me and other bloggers out there.
Other bloggers out there have taken chances and they paid off. They have earned thousands in a few months. For only $3.95/month, you don’t have much to lose but so much to gain! You can have your own money earning blog and a passive income every single month!
Learn to live below your means
One of best things you can start doing is to live below your means. I know its not very easy to do at first. But once you get a hang of it, practice and do it. It will help you achieve a better lifestyle.
There are others that choose to live frugally (below their means) and have eliminated their debt by doing so. You don’t have to suffer by living below your means. And I don’t want you to. You can always find alternatives to your needs. For example. Instead of buying name branded things you can buy store brands.
This way you save money but still get things you need. And you can also use coupons. You can get things for free by using coupons and spend less money by eating at home instead eating out at restaurants every week. These little changes will help you save so much money.
You can live frugally and comfortable at the same time with small or big changes.
Contact & work with your creditors
When you ignore your creditors you can get charged fees after fees. They keep building up. And sometimes they can get hold of your bank accounts and freeze them so you can’t use them. It can get pretty bad. So its best not to ignore them and instead contact them. And figure a plan out with them.
Contact your creditors. Let them know about your situation and that you can’t afford to make payments. And let them know for how long. Show them you want to work with them. The worse thing is to run away from your debts and pretend they don’t exist. This will just make things worse for you.
I know some people will encourage you to not contact your creditors. Its best not to follow their advice. But to work with them instead. The nice things that might happen is: having your penalties and interest waived and having a payment plan you can afford. This has helped people pay off their debt in a few years or less. And this has also improved credit ratings for them. Having a great credit rating is important.
When you show good faith to your creditors, good things will happen to you!
Be careful with credit cards
I’m not going to tell you to stop using your credit cards. Because that would make me a hypocrite. I know others would feel strongly about you staying away from credit cards for awhile, but I believe you can still use them if you promise and try hard to be responsible, reasonable and strategic with credit cards.
The best kind of credit cards to use are the ones that give you cash backs, reward points and have offers. But make sure to pay your credit card bill on time so you can avoid penalties and fees.
There are people that payed their debt and got thousands of dollars in cash back awards. And they remained responsible with paying their debt.
Get a personal loan
Sometimes a personal loan can be a good thing. If your interest charges are way too high on your credit cards you can get a personal loan to cover your outstanding balances. But make sure the loan has an APR of 6% or less. This can save you so much money by not paying so much in interest charges.
Have you made money from these survey sites? Any tips to share?
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