Bills: How to Prioritize

Mortgage/Rent

Mortgage companies and some rental companies will report to the credit bureaus if you are late or miss your payment entirely.  For many people, the amount you pay for housing is the biggest, or one of the biggest, expenses they will have in the month.  Making this payment not only shows that you are serious about improving your credit rating, but also ensures that you are not going to be in danger of being pushed out of your home.

Credit Cards

There may be months where you can’t pay off your credit card balances.  Many people run in to this situation.  To save money, determine which of your credit cards has the highest interest rate and pay that one off first.  For your other credit cards, make sure you pay at least the minimum payment and do so on time.  Paying on time will save you from incurring late fees which just adds to your overall bill.

Pay all Past Due Bills

To make sure you are paying all your bills on time, you should pick one day during the month to sort through all of your bills.  Put them on your kitchen table or in a spreadsheet.  Pick a method to that works for you to know all of the bills that are due.  Once you know what bills are owed, you should find the ones that are past due and pay those.  You will stop creditors from calling and emailing you, and it will help you get back on track.

Loans

For some people, the best way to pay all their outstanding bills is to consolidate the total outstanding into one loan.  An unsecured installment loan can help you do this.  In addition, an installment loan can be used to have additional cash for either emergencies or for other day-to-day needs.  These loans generally give you a year to payback the loan and should have no prepayment fees.

Ask for Help

Most of the companies you owe money to understand that you can run into problems paying your bills.  Talk to them and describe your situation.  Oftentimes, the companies will have alternative options, extensions or payment plans available for financial hardships.  In addition, there are financial advisors that can help you with budgeting so that you don’t get over extended.  Ask your friends and family for referrals.

Apply for an installment loan today!