Having multiple bills can be a problem that may lead to financial bankruptcy. If you don’t change something soon, your financial issues will worsen. Exhausting your income every month is one of the spending habits that can lead to debt, especially if you are using your credit cards to fill the gaps. Eliminating some of these bills is often the best solution.
Taking Inventory of Your Bills
Start by creating a list of all your bills. Don’t try to do it all from memory; you probably won’t remember all the bills you pay each month. Use your monthly statements to help get started on the list. If you’ve signed up for electronic bills, print the data from the internet. Review your checking account to see which bills you pay each month to fill in any bills that you may have missed. The list may become overwhelming, but don’t worry. This is a necessary step to simplify and relieve the stress of your financial life.
Starting to Consolidate Your Bills
Can you consolidate some services? For example, can you get home and auto insurance and other insurances from the same company? Maybe you can bundle cable, internet, and landline phone services? (Or completely get rid of the landline, especially if everyone in the house has a cell phone.) If everyone in the house is on a different cell phone plan—and one person is paying—consider switching to a family plan. You might save money even by merging plans.
You may be able to consolidate multiple credit card balances by transferring the balances to just one credit card. You’ll need to start with a credit limit sufficient to accommodate all your balances. A balance transfer card with a promotional interest rate will allow you to consolidate your expenses and save money on interest.
Eliminating Some Bills
Are there bills you can pay off? You may have some small outstanding bills that you can pay off and get rid of completely. It may require a short-term sacrifice but is crucial for your long-term mental health.
Are there some bills you can eliminate? Review all of your recurring monthly services and memberships. There may be some that you can cut to simplify your bills and save money, especially if you aren’t using them. Some ideas for elimination may include cable TV, movie streaming services, satellite radio or premium radio (like Apple Music or Spotify), monthly subscription boxes, and magazine subscriptions. The more bills you can eliminate, the more space you will have in your budget.
Sharing streaming services with a friend or family members is another way to reduce the number of subscriptions you pay for each month.
Contacting Those You Owe
If you have overdue bills and can’t catch up immediately, contact the entity you owe to discuss your payment process. Discussing financial difficulties isn’t an easy process, but you may be surprised that many companies are willing to work with you. For example, you might be able to pay off your outstanding balance over several months or waive your late fees. Many creditors and lenders have hardship programs specifically designed for customers facing financial issues.
Making More Money
You may not be able to earn more money from your current job, but consider getting a part-time job to help you pay your bills. You can also earn extra money from a hobby by providing a service, selling things, or starting a business.
Avoiding Excuses
This is perhaps the most important step of all. When it comes time to cut expenses, avoid saying “I can’t get rid of _____ because…”. If you have too many bills, you need to eliminate some. It’s that simple. Justifying the reasons you keep unnecessary services won’t help. You’ll need to make tough decisions and sacrifices if you want to improve your financial situation.
Say
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I can’t” do something that puts you in a position of helplessness and leaves you unable to do anything. But when you change your thinking, you give yourself the ability to make the necessary changes to improve your financial situation. When you say “I can” instead of “I can’t”, you stop making excuses and start finding alternatives.
If you are facing financial problems, the worst thing you can do is sit idly by. Your financial situation will not fix itself. Instead, it’s up to you to take control and turn your financial situation around.
Source: https://www.thebalancemoney.com/what-to-do-when-you-have-too-many-bills-960830
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