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HOW TO GET AHEAD WHEN YOU’RE BEHIND ON BILLS- (Continued)


STEP #5:  MAKE A BUDGET

A budget is vital for getting your finances on track.  Without one, there’s no way you’ll be able to succeed, financially.  A budget will help you track your expenses and it will help you to tell your money where to go, instead of wondering where it went.

To make a basic budget, start with your total income at the top of the page.  Next, list all of your expenses, as shown above, listing them in prioritized order.  Start subtracting each one from your income.  Doing this will help to calculate the gap between your income and expenses.

STEP #6:  CUT EXPENSES

This is where you need to take a good, hard look at your spending.  When you're behind on bills and trying to get caught up, it is important to stop any unnecessary spending. Stop spending on eating out, going to coffee shops, cut the cable, etc.  You must differentiate between wants and needs. These changes don’t have to be permanent, but are necessary if you have any hopes of getting ahead of your finances.

STEP #7:  TALK TO CREDITORS

If you’re behind on bills, it would be a good idea to call your creditors to let them know what is going on.  Many times, most will be willing to help you create a payment plan that will suit your situation and will help you get back on track to continue to pay down your debt.
Even if you're not behind yet, it may be a good idea to call them, anyway.  Many times, you can get them to lower your payment and/or interest rate or even allow you to skip a month in order to get caught up.  There’s certainly no harm in asking for help.  Just make sure, before you send them any money, that you get any settlements or agreements in writing.  And never, never, never give them access to your bank account.

STEP #8:  INCREASE YOUR INCOME

After you’ve assessed your situation, cut out all unnecessary expenses and find that your ends are still not meeting, it may be necessary to increase your income.  I know that sometimes this can be easier said than done, but it’s all about being resourceful.  If your current job isn’t bringing in enough, you may need to look into getting a better job.
If that’s not possible, then maybe take on another job, in addition to your regular one.  Working two jobs isn’t fun, but it doesn’t have to be a permanent situation.
Another option is to sell stuff.  Go through closets, cabinets and drawers.  We all have extra stuff that we really don’t need.  You might as well make the most of it.  You can sell on Ebay, Craigslist or have a garage sale.

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