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8 Tips for Paying Bills
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 month. 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 general consensus in this area:
1. List out the 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 the 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, the lender might give up on you and take the next step - legal action. Avoid those hassles by being consistent and in open communication.
Adjustable Vs Fixed Rate MortgagesMortgage rates can either be fixed for the duration of your loan or can be adjustable. An adjustable rate mortgage is a loan that is set up with an .....
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 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 the 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 the 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 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 minimum 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 still 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 limit these companies will grant before your car appears on their repossession list. Any late payments here, like with your mortgage payment, will be reported to the credit bureau. Some companies may report immediately. Communicate your payment plan and stay in ......
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