Many modern companies can help you deal with debts and borrowings. In case of a difficult situation, you can turn to the specialists at Debt Stoppers and other similar services for advice. However, the best solution is to avoid such problems. Read on to learn how to pay your bills, so you don’t owe anything to anyone.
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How to Pay on Time
Managing numerous bills can be tricky. Here are some helpful tips on how to deal with them all on time.
1. Stay organized
It is pretty simple but powerful advice. Not everyone manages to stay organized and remember to pay bills. Fortunately, many useful tools can help you with it:
- Digital calendars. Use them to record appointments and schedule other important events. Your app will remind you on the right day to pay your bills.
- Notes. If you do not need reminders but simply write down information to remember it, enter the data in a notebook or notes on your smartphone;
- Task managers. These are complex applications with wide functionality, which will help you optimize your business and not forget about payments.
- Bill payment apps. Dedicated programs allow you to keep track of invoices, set reminders, and create custom trackers.
2. Choose a convenient payment method
An inconvenient method can get in the way of paying bills on time. If this process does not cause you any difficulties, it will be easier to avoid debt formation. You have a fairly wide selection of both offline and online options. During the pandemic, it is recommended to reduce contact between people, and therefore, it is better to opt for contactless methods. They include:
- Credit cards;
- Online banking;
- Mobile wallets;
- Bill payment platforms;
- Automatic payments.
3. Priotorize bills
If you have to deal with a huge variety of very different bills, you should categorize them. It will make it easier to pay for them. The first place should be the payment of the so-called necessities, that is, those things without which you cannot live. These include groceries, utilities, car payments, child care, etc. Next, you should pay for secured and unsecured bills.
4. Schedule your payday(-s)
Choose one or two days a month when you browse, check, and pay bills. It will keep you organized and avoid having to schedule other distractions on these days. As a rule, due dates of many payments coincide or overlap. So you can solve all important matters in one day without damaging the budget in the form of penalties and fines.
5. Save all documents
Any documentation should be kept for several years. The same applies to invoices and receipts. Whether you use paper copies or prefer digital ones, keep all documents in a separate folder (physical or on your computer). It can make it easier for you to keep track of expenses and remember which bill and when to pay.
What to Do if You Are Short on Cash
Ignoring incoming bills and not paying on time is not the best solution. Keep in mind that being heavily indebted can hurt your credit score. If you cannot pay all bills at once, deposit at least the minimum amount to your accounts. It will save you from calls from a bank, collectors, and other financial institutions. Also, you need to take the following steps.
Pay the most important bills
When budgeting, you need to categorize all the invoices that come to you and, first of all, deposit money according to those that are of vital importance (food, mortgages, healthcare, etc.). It is highly discouraged to skip such payments, as it can significantly complicate your existence.
Ditch non-essentials
If you spend some of your income on non-essential items like alcohol, taxi rides, magazine, or streaming platform subscriptions, you should ditch them. Your quality of life will probably change somewhat after you give up such benefits. However, you will be able to save some money and pay your bills on time.
Find out the grace period
Generally, there is some time between the due date and the day your account will be credited with interest. In a situation where you do not have enough funds to pay, this gap can be useful. Figure out your grace period to stay flexible.
Talk to creditors
If you find yourself in a difficult financial situation and cannot pay bills on time, you should warn your creditors. You may be able to negotiate a deferral or change in your payment plan. If you are not confident in your own skills, you can contact debt relief agencies for help. Such specialists will negotiate on your behalf.
Prevent Unnecessary Debts
Bill management requires specific skills, perseverance, and organization. Unfortunately, it is impossible to ignore this issue, as it is fraught with high penalties and debts. Set aside time on your schedule to fill out paperwork and pay bills regularly, and feel free to seek qualified financial counseling if you can’t do it yourself.