What to Do If You Can’t Pay Your Bills on Time

 Are you struggling to pay your bills on time due to Covid-19?

Today, I have a great article from Neiko Johnson on how to pay your bills on time if you are struggling financially. Neiko and his wife have paid off $240,000 of debt in 27 months. They share their finance knowledge and debt-free journey on their blog Secret to Finance. The primary focus of their blog talks about budgeting, paying off debt, money tips, building generational wealth, and increasing income with side hustles.

Financial issues have become common due to Covid-19. In fact, even if your health is doing great you could be having other issues in your life – especially when it comes to money.

If you are concerned with how you will keep up with your finances right now, you are not alone. According to a recent survey by U.S. News, close to 60% of Americans have financial worries because of the Covid-19 pandemic.

You have options if you have lost your job or income during this time. Take these steps to take more control of your financial situation.

1. Get on a very tight budget

Managing your spending is a very important step when it comes to your finances. This is even more important when money is tight. To make sure you can control your spending, you must create a budget that can help you find your way through the difficult times. 

The best approach is to get on a very tight budget and cut expenses wherever you can. It first starts with reevaluating your expenses and deciding if the expense is necessary, can be lowered, or can be completely cut out of your budget.

Here’s a great article to find ways to save money even if you are on a tight budget.

Important to realize, it is fine to adjust your financial goals during a difficult time. Also, you may not be able to pay off debt or save as much money during this time. However, getting on a very tight budget can help you add more money to your emergency fund.

2. Call to negotiate your bills and debts

It is important to remember that you can reach out to people to ask for assistance during the Covid-19 pandemic if you are struggling with paying bills.

A lot of lenders, banks, and companies are reaching out to people to advise them of the different options available. This is a great thing to consider to get you through this time.

Also, remember you are not receiving forgiveness of debts. Meaning, you will have to pay the bills at some point soon. Be certain you understand the terms of the assistance being offered so you do not put yourself in a worse situation down the road.

3. Consider consolidating your student loans and other debts

A great way to save money and reduce your expenses is by consolidating some of your debts. However, it is not always a great idea. You must make sure you are getting a lower interest rate or reduced payment. Otherwise, it does not make sense to consolidate.

Another option is to consolidate your student loans. When you apply for student loan consolidation, you combine all your existing loans into one. You will receive a new fixed rate by averaging all your rates from your previous loans.

Another common approach for some people is to balance transfer credit cards. This is where you move all your outstanding credit card debt to one account. Most importantly, it is best to pay down your debts as quickly as possible. 

But, if you are not able to pay it off, make sure to at least pay the minimum.

Remember to research your options. Not everything advertised is the right option for you.

Final words – what to do if you can’t pay your bills on time

In conclusion, Covid-19 has made everyone have to adjust and make changes. Remember that you are not alone in this situation.

It is very normal to feel stress if you are struggling to pay your bills during this pandemic. But remember you have options and to keep pushing forward.

Focus on your strategies and stay motivated to your long-term financial goals.