If you can’t pay your bill, your financial stress may go through the roof. And that’s completely understandable! No one encounters unexpected financial difficulties. If you find yourself in a tight space where bills are stacked, the key is to create a solid plan to let you pass until a better day.
We are here to help during this ordeal. Today we’ll explain six important steps you can take if you can’t pay an invoice that will help alleviate your current financial problems.
Six steps to take if your bills are stacked
If you can’t pay the debt, it can be disappointing. However, taking action is important to ensure that your finances are on track as quickly as possible. So here’s what to do when you can’t pay your bill!
1. Start with your essentials
The first step to taking when your bills are stacked is to determine what you absolutely need to spend money on and what you can get without it. Expense prioritization allows you to choose to focus on the most pressing financial issues. When you sort your invoices, it’s important to prioritize what you need to deal with and what you might be reduced from your budget.
Unfortunately, this comes down to the difficult boundary between needs and desires. You need to decide for yourself where you are in your life. Let’s take a look at some of the general priorities that most of us have on a budget.
Fundamentals
Throughout human history, the essence of life has been food and shelter. In modern times, it means paying for food, housing, utilities and transportation. Get the best bill in your budget. These core bills are our means of survival.
They represent survival, so they remain a top priority for our spending. Especially during a crisis. The average American spends thousands of dollars on homes and food each year, so creativity is needed to continue paying for these needs when bills are stacked.
Important invoices that stay above
Beyond basic survival, most of us have some invoices that are important to pay, but if we can’t make these payments on time, we won’t suffer physically. Some of these may seem like essentials, but for now it may be possible to delay or reduce these costs. Here are some that may exist in your life:
tax
Depending on where you live, you may be responsible for federal, state, local, and property taxes. The government may step in to delay tax burdens at the federal level, but you will need to pay your other taxes on time.
Legally, it is important to pay tax bills on time. If you don’t make payments on time, interest liability can be out of control. However, for now, you may be able to create a payment plan that will allow you to postpone most of what you owe.
Car payment
If you have to pay for the car, this car might be a way to get to work. In fact, the average American commute spends 26 minutes each day on work. So, if you’re stacking bills, this is the priority. Whether you’re currently out of work or planning to commute as quickly as possible, this should be one of your top priorities.
insurance
Insurance comes in all shapes and sizes for a wide range of liabilities in our lives. Without insurance, you open yourself up to expensive legal risks that most of us simply can’t afford. It is recommended to consider premiums as a priority when bills are stacked, as lapses in insurance payments can lead to expensive mistakes.
debt
If you have outstanding liabilities, try to keep up with the minimum payment. Depending on the size of your debt, this is easier said than done. If you were on the path to getting rid of debt, that decision can be heartbreaking. However, don’t try to continue your aggressive debt pay-off plan until you get used to your immediate financial situation.
Taking a break from a fierce debt repayment plan does not mean you won’t pay your debts back. It simply means you need to take a temporary suspension to prioritize your immediate needs. Therefore, if you can’t pay your debt as quickly as you wish, don’t be discouraged.
Everything else
Beyond these essentials and immediate invoices, all expenses need to be reduced for now. Perpetrators of regular budget violations include eating out, traveling, streaming services and subscriptions. Make an effort to wipe out this spending from your immediate plans.
Some suggestions for more affordable entertainment include reading bookshelf, canceling streaming services, and checking the library. Even if you can’t physically go to the library, you may still be able to get access to some of the free digital options, such as audiobooks, ebooks, and streamable indie films. If you need suggestions, you can also check out your favorite books.
2. Set the invoice budget
After thinking through the costs and determining what is absolutely essential, you can set a budget. If you’re not sure how to get started, check out our free budgeting courses to help you build a budget that works instantly. If you have emergency savings, now is the time to use them.
The goal of your budget is to eliminate all unnecessary spending so that you can grow your savings on hand. If you don’t have emergency savings, it’s a good opportunity to open an account and create a plan to make small contributions. Even if it’s just a few dollars until you get back on your feet, a small amount will be added.
3. Communicate with provider when invoices are stacked
Obtaining stocks for the situation is a big step. Hopefully you’ve found a way to cut your costs and pay your essential bill. However, it may not be the case. If you are unable to pay your invoice for absolutely, you should contact your provider as soon as you notice that there may be a problem.
Many types of companies that you can call and potentially resolve your adjusted payment arrangements. The most common types of companies that are likely to work with you include utility providers, credit card issuers, student loan lenders, mortgage lenders, landlords, and health bill providers.
When contacting these companies, be prepared to explain that you are unable to pay details about your debt and financial situation. Often, they can help you. If you find a collection account, for now you can create a plan to deal with it once it’s on track.
4. Expand your savings to cover your expenses
You can choose to use everything you already have to push your savings even more. This principle ranges from toiletries to unread books in your home, but the most useful example is food.
Try your meal plan with what you already have and push down food costs in the short term. If you need the motivation to start a meal plan to save money, consider taking on the challenge of a 30-day free meal planning.
After using what you have, switch to a popular brand and save more. You may be surprised that these small shifts can really increase the funds you have available. Reducing essential costs will help these bills save money stacked up!
5. Be creative to earn money to pay your bill
So, what’s another simple tip on what to do when you can’t pay your bill? Increase your income. So take this opportunity to think outside the box in terms of generating extra income for yourself. For example, are you splitting your invoices with your partner or can you get a roommate?
Also, think about the skills you already have and the skills you’ve always wanted to learn. This could be a great opportunity to strengthen your side hustle or start a completely new business.
If you decide to start your own business, consider taking a completely free new business owner course to help you get on the right track. Starting a business can take time, but selling anything in a home you don’t need can help you quickly raise funds.
If you’re like me, you’d want to get rid of hundreds of dollars worth of stuff. Good items from start to start include electronics, textbooks and designer bags. Don’t limit your income chances. Get excited and explore paths that could lead to income. It helps you make dramatically more money when you can’t pay your debts.
6. Change your way of thinking
With bills piled up, it is difficult to develop a positive mindset. However, our money decisions are greatly influenced by our attitudes towards money. It’s easy to allow money to overwhelm us with the wrong idea. The key to long-term financial success is the mindset that allows you to confidently manage your money.
You can choose to adjust your way of thinking and change your financial future for the better. If you’re helping you navigate this change of mindset, try building a free “solid foundation bundle” designed to help you think about money differently.
Now you know what to do when you can’t pay your bill! That may be scary, but you can try and survive in the economic era. Take your time and set up a realistic budget that will help you navigate the next few weeks.
Most of us feel some relief from stressful times when we are planning. We work towards building your plans and creating a positive attitude towards money.