Updated: Jun 6
If you are behind on your bills, it is time to come clean. When I say come clean, I mean it is time to tell the people you owe money too that you cannot pay them. Not that you will not pay them, but just that you cannot afford too right now.
First, make a list of all the people you owe money too. Family, Friends, Rent, Electricity, School, Daycare, Cell phone…You name it, add it to the list.
Come up with a plan
Figure out how much money you are currently making, and how much you would need to pay them all off. Yeah, it might seem like a lot of money to pay back, but we are going to come up with a plan together.
Say for instance, that you owe the following on your Rent, Cell Phone, and Credit Card:
Rent – you owe 1 months’ rent = $750
Cell phone – You owe 2 months = $200
Visa credit card – You owe = $1000
That would mean that in total you owe $1950. Hence, you need to figure out how to bring in an extra 500 dollars per month. Part-time job, babysitting, house sitting, cleaning…whatever you can do to bring in that extra money will help your budget.
If your pride is chiming in and telling you not to make more money, tell it to be quiet.
With that extra $500 you can now start to negotiate.
Call the cell phone company and negotiate a payment arrangement plan if you can, $50 per month extra that you will be paying on top of your monthly bills.
The cell phone will be paid off in 4 months
Regarding your Visa card, call and negotiate a payment plan that will not cancel your credit card but will give you no interest in the next 4 months. Then make payments of $250 while you're payments are interest-free.
Visa bill will be paid off in 4 months *do not use your visa card while doing this
Then rent, arrange with the landlord to make extra payments by giving him post-dated checks for $200 extra until you can pay off the skipped rent payment
Rent will be paid off in less than 4 months