| Prioritizing
Your Budget
If your budget
shows you have more expenses than income, there are many ways to
get out of trouble. Remember, everyone has different priorities.
You will have to make the decisions that are right for you.
What payments
should I make first if I don’t have enough money to pay for
all my bills?
- First, pay
off your necessary household expenses, such as rent or mortgage,
utilities, and food, first. You need to pay your rent or mortgage
to ensure you don’t get evicted or have your property foreclosed
upon. Think about the health and safety of your family when making
these types of decisions.
- Many utilities,
such as the telephone company, electric company, and gas company,
have programs to lower your bill if you qualify. If you think
you need assistance, contact your utility company.
What should
I do if I can pay off my monthly household expenses, but am having
trouble paying off my loans?
- Pay off the
loan with the highest interest rate first to save on interest
payments.
- Talk to
your creditor. Your creditor may be willing to reduce your payments
or change the terms to accommodate your situation. Some creditors
might offer extensions, smaller payments over a longer period
of time. Some creditors might accept partial payments.
- Get a debt
consolidation loan. Be cautious of this option. If loan fees and
interest rates are too high, it may not be the best option for
you.
- Get professional
advice. Reputable credit counselors can help you deal with your
financial problems. Some organizations charge little or nothing
for their services.
- Be cautious
of companies that promise to fix your credit problems right away.
Credit repair can be a long process that might take several years.
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