Still Paying on Your Past Due Bills?
Paying on My Past Due Bills
I always looked forward to payday. I would list my bills on a piece of scratch paper; and annotate the due date and minimum amounts due next to each bill. Then I would begin the task of seeing what had to be paid out of this check and what could wait until my next check. I would pay on my past due bills because in my mind, the current bills weren’t due yet. I wasn’t technically late, for another 30 days or so. And I would be good to go by then- but I never was. Have you ever found yourself in a similar situation?
Even though I always looked forward to payday, I didn’t look forward to being broke by the end of the day. After I paid everybody else, I would barely have anything left. Then, I had to figure out how to get by until I got paid again. I was always hopeful that things would magically turn out better. It didn’t- not until years later when I was finally got tired of it.
Things Get Worse?
Here’s the deal. Paying on past due bills like they are your current bills can backfire on you and end up costing you more. It only takes one thing to go wrong to mess the entire system. It wasn’t uncommon to forget a bill, time the payment of a bill wrong so that it bounces, miscalculate so end up not having enough money to pay everything- not even the minimum balances. As a result, services can be cut off, late fees charged, bounce check fees charged, and interest snowballing. Then, when you call that credit to ask for an extension, they offer forgiveness by capitalizing the unpaid interest so you end up paying more.
What to do?
> Create a budget. You may not be able to immediately apply it, but you need to see in black and white, what you have coming in and going out. A budget, itself, is a game changer because for many of us, the problem isn’t too little income, it’s not tracking where our money is going.
> Create a surplus. Spend less money and possibly make more money. Then
use that surplus to start catching up on bills. There is no way to gain traction if you continue to spend at the same rate or raise your level of spending as you raise your income. Cancel subscription, memberships, and activities that you can live without right now. Reduce the food budget. It’s one of the biggest categories for spending. Go through your list two more times to see what else you can knock out. Additionally, create another stream of income to add momentum.
> Prioritize past due balances. I would focus on the ones that would affect you most adversely. I always did that. These would be things like your home, utilities, transportation and food. There are consequences to not paying your mortgage (foreclosure); utilities (gas, electric, water turned off), vehicle (repossession). So it’s important to make them the priority to catch up on. Credit cards can ruin your credit score, can charge interest and penalties, but normally can’t take your stuff. So, continue to pay on all the past due bills, throwing all extra cash towards catching up on priority bills first.
> Automate your bills. Once you’re all caught up, automate your bills. If your income is steady each month and your bills are standard as well, you can automate all of your bills (or your priority bills) so that they are automatically paid each month. You don’t have to rely on your memory, calculations, or skill in moving things around. Start with one bill at a time (like your mortgage) and then build from there. I remember it being a little scary when I first started, but now it’s something I always recommend. It saves time, stress, and money.
Conclusion
Paying on your past due bills because in your mind, your current bills aren’t due yet- can be something in your past. Apply the steps outlined or find a system that works for you. Stay focused, encouraged, and connected to helpful sources.
You can buddy up with someone else who is making positive changes in their finances.
You can join my accountability group.
You can find encouragement in Blogs and on YouTube. Find 2 or 3 and tune in frequently.
Feel free to share your thoughts and/or your own story.
