I hope the title didn’t worry you. We’re doing okay with our finances, saving money, paying down debt, etc. I was just reading this week a wave of news stories that had the same theme: how hard it is to pay bills in these difficult times.

Sometimes hard times hit us and we’re left trying to figure out how to pay our bills. I noticed an increase in readers asking for advice on how to pay their bills when their income drops significantly.

It is a mix of circumstances and poor decisions. While we could go for a long debate on making wise financial decisions, I’d thought it be more practical to post some tips on getting finances under control temporarily.

Prioritize Your Expenses

I was reading accounts where people are using their credit cards to pay their bills! That’s insane. It’s not helping the problem, as many cards have high interest rates and will increase your debt load.

The first step is to prioritize your debts, paying the necessities first.

• Housing: You need a roof over your head. If you have a mortgage, please focus on paying this bill to avoid foreclosure.
• Food: You need food to survive. Cut out all eating out expenses and stick to grocery foods. Eating sandwiches may not be the popular choice, but it’s the smart one.
• Utilities: Electric, phone, and water are important utilities. Cancel your cable bills and make sure you’re not paying too much for phone service. You can call and see if you can qualify for assistance or a special payment plan.
• Car **If you are way over your head with car payments, try selling it to break even. **

Negotiate with Credit Card Companies

Set up a payment plan. If you’re unable to pay the minimum for your credit cards, call them to set up an affordable plan. At the very least, ask them to waive fees and lower your interest rate. Some credit card companies are more willingly to work with you as the economy has hit many families hard. They would rather get some money than no money.

Get the payment plan in writing. It will only add to your headaches if they go back and say they never agreed to the plan.

If they are unwillingly to work with you and bills are mounting, consider transferring to another card with 0% interest. Be care though, as some cards have a fee with transfers. This is a last resort solution, as it’s not getting to the root of the problem, but merely keeping your head above water.

Get a Second Job to Increase Your Income

If you are having extreme difficulty paying your necessities, consider getting a second job, preferably part-time. You don’t want to burn out and lose your main job, but you have to get your finances in gear.These are temporary fixes that can buy you some time to make changes.

While I hope none of my readers have to go through this, the sad reality is it can hit any one of us. We can reduce our chances by reducing debt while we have money. Has anyone been through this? What helped you to survive? Do you have any tips on how to make it work?

Photo Credit:  quaziefoto

Related Blogs

• Related Blogs on car payments
• credit cards articles » Blog Archive » Your Car Payment is Part of …
• » Ditch Your Car Payments (and Carbon Footprint) with Car Sharing …
• How much money ($TT) would I need to start up with in Trinidad …
• Tips for First Time Car Buyers | Dorm Room Biz

• Related Blogs on Credit Cards
• How to Rebuild Credit With Credit Cards | TheMispricing

• Related Blogs on getting to the root
• Getting to the Root of the Carrots! « Greece Donkey Droppings
• Do you know where your mountain Pine Beetles are? | Muchmor Magazine
• How to Choose a Supplement
• patspam.com » Blog Archive » Ode to wgd and the command line

• Related Blogs on temporary solution
• Prevention Is the Best Solution to Remove Acne Scar
• Directing the Conflict…a Real Solution or a Temporary Choice which …

• Extra Car Loan Payments   I've been trying to pay down my car loan faster, so I've been making extra payments. I use my local credit union's online bill pay which let's me put a memo on my ‘checks'. I write that the extra payment is supposed to all go into the principal.......
• Negotiate with Credit Card Companies Handling credit cards is can be difficult unless you have a plan.  With some planning and preparation, you can be on top of your credit card and finances. For many college graduates, getting out of credit card debt is your first goal. Handle your credit card responsibly If you want......

• Young American’s Guide to Avoiding Debt This article is a guest post by William Eve. William writes about saving money, investment loans and real estate for Home Loan Finder. If your a first home buyer or looking to refinance, visit the Home Loan Finder website for great advice and to compare home loans today. Avoiding debt......
• 6 Easy Tips on Raising Your FICO Score In today’s world, it’s easy to define your self worth by your FICO score. Whether you are trying to buy a house, get more credit or just get back on the right track, a low FICO score can really impact your entire life. However, there are some easy steps that......