Little People Wealth tries to teach you how to deal with debt problems, but sometimes they are inevitable (especially when there is sudden and unexpected bills, such as emergency healthcare). Here are a few things you can do if you find yourself in over your head:
Prioritize your Bills
If you are certain that you cannot pay all of your bills then you need to figure out which ones you can pay. Cancel your cable, internet (if you do not need it for work), and possibly phone lines (do you have both a landline and cell?). Get your electric and gas bills down to the bare minimum (only run the air conditioner or heat if it is necessary and unplug appliances when not in use). Once your bills are at the minimum you need to pay your electric, water, and gas first so your utilities are not shut off. Next, make sure you are able to eat. Cut out eating out of the home and start using coupons. Finally, pay your mortgage. Talk with your lender to see if they will work with you if you are having trouble with this step.
Non essential bills include your credit cards and extra vehicle loans. If you are able to sell an extra vehicle then do so. It will save you the payment, insurance, and you will walk out of it with a little cash (hopefully). Not paying your credit cards will cost you quite a bit in interest, but you are not going to starve, be kicked out of your home, or lose the heat so make sure those bills are paid first.
Make Extra Money
Start looking around for any way that you can make some extra cash. Hold a garage sale and sell anything in your house that you do not need. Look into work at home opportunities such as mystery shopping and survey sites. Every little bit counts!
Seek Outside Help
You may be in a situation where you will have to seek debt consolidation or bankruptcy. If this is the case then you can get outside help. Keep in mind that you should NEVER pay for a company to help! If they are asking for you to pay for it then it is a scam.
Being so far behind in your bills that you cannot keep up is a frustrating situation to be in. Just try to remember what is important and take it one step at a time.
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