No one is completely immune to financial challenges. Even if you have the best intentions and a clear financial plan, there could come a time when you need help paying bills. Here are some of the many reasons why people fall behind on their bills:
- Job loss
- Pay cut
- Family emergency
- Medical emergency
- Wedding expenses
- You recently had a child
- You loaned money to a family member or friend and have yet to be paid back
Let’s face it, there are times when “life happens” and you may suddenly find yourself in an uncomfortable financial situation. And while it’s important to recognize how you got there, it’s also important to swiftly take action to get you back on more solid financial ground.
Regardless of why you need help paying your bills, what matters is that you find a solution to your immediate financial needs and a plan to avoid getting behind on bills again in the future.
How to Save Money When You’re Struggling
A review of your spending habits and budget may give you an inside look at the ways to save money each month.
Some of the money-saving strategies you can implement include:
- Cut back on your cable and internet
- Eat out less
- Avoid credit card and bank fees
- Take public transportation to and from work
- Keep a close watch on your water, gas and electric usage
Along with the above, it’s a good idea to have a budget to keep you on track. Taking this one step further, review your budget at the end of every month so you can answer these questions:
- Where did you spend most of your money?
- Which categories can you cut down on in an attempt to save?
- Are you able to eliminate any expenses that continue to hold you back?
By answering these questions, you can gain a better understanding of ways to save.
Get Back on Your Feet
You may be frustrated with your financial situation, but that doesn’t mean you should give up and simply hope for the best in the future. Instead, there are some steps you can take to get back on your feet.
For example, there are times when it makes sense to consolidate debt. This approach allows you to better organize your debt while also saving money on monthly interest charges.
Another option to consider is a personal loan. You can use this type of unsecured loan to pay your bills, consolidate debt, or even pay for a big event in your life.
For many people, a personal loan gives them the money they need to immediately improve their outlook. They can use the funds to catch up on their debt.
The primary benefits of a personal loan include:
- One monthly payment for consolidated debt
- Fixed interest rates
- Fixed terms
If a personal loan sounds intriguing, here are some details to focus on as you compare lenders:
- You shouldn’t expect to pay an origination fee or any other type of fee (as long as you continue to pay on time).
- Competitive fixed rate. With this, as opposed to a variable rate, your monthly payment will never change.
- Length of the repayment. For some, a 36 month personal loan is the right solution. Others, however, may opt for a longer term, up to 84 months, that may offer a lower monthly payment than the shorter repayment term.
- Loan amount. The ability to borrow the amount of money you need.
With so many benefits, a personal loan may be preferred when compared to other options, such as:
- Using all your cash or savings
- Cashing out your retirement plan
- Using higher interest debt
- Borrowing from friends or family
Take Back Control of Your Finances
You may be a bit off track, but there are plenty of ways to take control of your finances in the future.
If you need help paying the bills, it may be time to examine and compare all your options. A personal loan is an approach that provides the financial power and relief you need to regain control of your finances.
For more information, read our section on how to get a personal loan.