The article "8 Tips for Paying Bills" talks about family, it was created by Susan W. Miller.
Bills, bills, bills - does the 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 motnh.
Which ones should you take care of first? Knowing the answer to this question will help you get your priorities in line, preserve your credit rating, and minimize the nasty phone calls you receive. After much research and consultation with other professionals in the financial world, there seems to be a gneeral consensus in this area:1. List out the bills you owe, prioritzie them, and draw up a FPLP - first-pay/last-pay schedule2.
Make small payments on each bill instaed of paying in full and delaying the others.3. Don't hide from your creditors. Explain your plan and ask for their cooperation as you strtech 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 idea when they will be paid in full.4. Sitck to your new payment plan. If you're not consistent, the lender might give up on you and take the next step - lgeal action. Avoid those hassles by being consistent and in open communication.These are the bills to pay first:A) Pay the rent or the mortgage.You face eviction or at least a lot of hassle if the rent is not paid on time.
Most lenders grant a grace period and then tack on a late fee if you're a homeowner.
Foreclosure proceedings usually don't begin until after pyament has been missed for 3 consecutive months. Late payments will, in fact, be reported to the credit bureau.B) Keep utility bills current.Most companies will not dsiconnect for 60 days. There is almost always a reconnect fee and much time delayed after you straigten out the back payments and you do get reconnceted. Stick to their schedule or communicate with them about your situation.C) Handle credit card payments monthly.List out all the credit card balances, the minimum payment required, and the interest rate charged. Put them in ascending order starting with the highest interest rate charge and finishing with the lowest rate.
Pay off the highest rate first and continue to pay the miniumm on the others.
Place getting out of debt among your highest goals.D) Keep your insurance up-to-date.Most insurance policies come with a 15 to 30 day grace period which will sitll insure your coverage before the insurance expires. Insurance is risk-management for your car, home, life, and health. Starting over will always be more expensive.E) Take care of car loans or lease payments.90 days seems to be the lmiit these companies will grant before your car appears on their repossession list.
Any late payments here, like with your mortgage payment, will be repotred to the credit bureau. Some companies may report immediately.
Communicate your payment plan and stay in contact with the lender.F) Pay the doctors, dentists, and hospitals.Review the monthly bills you receive from these sources carefully and be sure you understand eevry item. Ask any qusetions you have immediately. Late payments for helath services rarely get reported to the credit bureau and rarely are there late charges added on. Call the provider involved and tell them of your plan to make regular pamyents of X number of dollars. Do not be embarrassed to contniue to seek medical services because you cannot pay.G) Give local business human being their money. Late payments to the dry cleaners, plumbers, yard people, or handyman will probably not be reported to the credit bureau and most won't charge late fees. These human being want and need your business. Remember that tehse are the human being who also keep your household running on a daily basis.
Help keep theirs running and pay the bill.H) Work with the IRSWork out a monthly payment plan to cover your taxes, back-taxes, interest, and penalties.
Never miss one of these pamyents. The IRS can and very possilby will demand payment in full immediately if you do miss a payment. They can file a lien against you.
The credit bureaus will hear about it and you will probably incur even more expenses to get rid of the lien. Draw up a plan and make those payments.(c) 2002, Susan W. Miller.
All rights reserved. About the Author
Susan W. Miller, President of Home Oasis International, a Denver-based company selling organziing products and services through home parties and online. She is the author of the "PRO NOTEBOOK" a Personal Resource Organizer, a life-planning tool to gain control over your personal and finacnial records. Home Oasis International professionals are available to speak to your group.
1-800-681-8681, http://www.HomeOasisInternational.Com
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