Things To Do If You Can’t Pay Your Bills
Be it due to job loss or some other unfortunate event, something has arisen, and you’ve now found yourself in the position of being unable to meet your obligations. It’s a nightmare scenario – but it does happen.
Fortunately, you needn’t despair or throw in the proverbial towel. That are moves you can make to mitigate the fallout from whatever has occurred until you get back on your feet. With that said, here’s what to do if you can’t pay your bills.
The Issue
The pandemic put a lot of people on their heels, in terms of steady income. What’s more, the business environment it has spawned is still evolving, which can add to your uncertainty. To further compound matters, we’re amid an inflationary period, the likes of which we haven’t seen in 40 years.
But, as we say, there are things you can do to help gain some control over an unenviable situation.
Try Unemployment
If you’ve never had to collect unemployment, count yourself lucky. The fact is that, if you’ve lost your job, funds are likely available that at least should keep you afloat until you can find another position. If you don’t know how much you may be eligible for, check with your state’s unemployment insurance office.
Reach Out to Creditors
It may be the last thing you want to do – that’s only normal – but it’s imperative that you get in front of your situation by contacting the people you owe. It’s important that you do this as soon as possible. Whether you can’t make the payment due, you need additional time, or you wish to talk over payment options, make the calls and tell them your situation. You don’t want your credit messed up if you can help it.
The first thing you might want to do is check your lenders’ websites to see what hardship help may be available. You never know, you may be eligible for a lower interest rate, a loan extension, forbearance, or more flexible repayment terms.
Credit card issuers may even waive certain fees, like ATM activity or overdrafts, or late payments. It never hurts to ask.
When you do call them, be ready to speak candidly about your financial and job situation, and the amount you can afford to pay. It would also be helpful if you gave them some idea of when you think things will begin looking up, and you’ll be able to resume regular payments. Tell them about your income, your monthly expenses, and your current assets.
Note that any credit agreements should be in writing. If no agreements are forthcoming, consider contacting Achieve financial services.
Don’t Pull All Your Cash Out of ATMs
Your instincts may tell you to withdraw all the cash you have, either for safekeeping or to psychologically assure yourself that you do have something. But seriously, let your cash be. For one thing, the funds are safe – federally insured — where they are. So, don’t withdraw more than you need.
Regain Control
While you may want to, with every fiber in your being, this is no time to fall apart. In fact, if you adjust your mindset, you can use this stressful situation to get on top of your finances, and perhaps be better prepared the next time “life” happens.
One of the first things you want to do is to establish a budget, so you know how much you’re spending and what you’re spending it on. It’s imperative that you track your spending, and get it under control if it’s a problem. It’s also a good time for you to gather all your bills and see just how much you owe, and what the interest rates are.
So, yes, there are moves you can make if you can’t pay your bills. Some may help you in the near term, while others will kick in over the long haul. Use this situation – which shall pass — to assess your finances and set yourself up for an even brighter future.
