8 Tips for Paying BillsWritten by Susan W. Miller
Bills, bills, bills - does mailman deliver anything else? What am I going to do?Maybe you really do want to pay your bills but just can't afford to pay all of them this month. Which ones should you take care of first? Knowing answer to this question will help you get your priorities in line, preserve your credit rating, and minimize nasty phone calls you receive. After much research and consultation with other professionals in financial world, there seems to be a general consensus in this area: 1. List out bills you owe, prioritize them, and draw up a FPLP - first-pay/last-pay schedule 2. Make small payments on each bill instead of paying some in full and delaying others. 3. Don't hide from your creditors. Explain your plan and ask for their cooperation as you stretch these payments. Assure them they will be paid in full. If you have a plan in place, you may be able to even give them some idea when they will be paid in full. 4. Stick to your new payment plan. If you are not consistent, lender might give up on you and take next step - legal action. Avoid those hassles by being consistent and in open communication. These are bills to pay first: A) Pay rent or mortgage. You face eviction or at least a lot of hassle if rent is not paid on time. Most lenders grant a grace period and then tack on a late fee if you are a homeowner. Foreclosure proceedings usually don't begin until after payment has been missed for 3 consecutive months. Late payments will, in fact, be reported to credit bureau. B) Keep utility bills current. Most companies will not disconnect for 60 days. There is almost always a reconnect fee and much time delayed after you straigten out back payments and you do get reconnected. Stick to their schedule or communicate with them about your situation. C) Handle credit card payments monthly. List out all credit card balances, minimum payment required, and interest rate charged. Put them in ascending order starting with highest interest rate charge and finishing with lowest rate. Pay off highest rate first and continue to pay minimum on others. Place getting out of debt among your highest goals.
| | Organize to Simplify - Monthly Financial ChecklistWritten by Susan W. Miller
"Organize to Simplify" Monthly Financial Checklist By Susan W. Miller1. Select a monthly or twice-monthly date for handling all paperwork, and to meet your financial obligations. You may find this works better if you select one day a week and stay on top of things that much better. 2 Gather all supplies and equipment before you sit down to deal with paperwork. Typical things include pens, file folders, checkbooks, stamps, labels, and calculator. 3. Sort all papers into five piles. These will eventually go into five financial folders: a. Banking b. Bills to pay c. Payment booklets for fixed obligations d. Sales slips and cash register slips e. All other statements, such as insurance and investment notices 4. Balance your bank statements with your checkbooks. Follow directions on back of statement if you are not sure how to balance account. Put reconciled statements in a file folder or binder labeled by name of account. 5. Write checks for bills and update your expense projection on expenses that vary from month to month. Keeping this information current allows you to have a better idea of what to expect.
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