If bills are piling up and your bank account is looking dry, it's time for drastic measures. Coming up with money to pay bills may seem impossible, but the truth is that there are plenty of ways to reduce your expenses and free up some money to cover the basics. Whether this is a one-time emergency or you're looking for a way to deal with your bills better on a monthly basis, options are available.
Step 1
Write down your current monthly expenses budget. The best way to do this is to note every single thing you spend for a month. In a different page, make a list of your fixed expenses, including bills, mortgage, credit card payments and even transportation and groceries. This will give you a better idea of what you need to earn as a minimum to cover the basics as well as seeing where your money is going.
Step 2
Make a list of all the bills you owe and the date they are due (an approximate date is fine if you're trying to figure out upcoming bills). Then see if any of the bills can be reduced to save money. For example, you can try canceling the premium channels on your cable, switching to a cheaper cell phone plan or finding a combination plan for your home phone and Internet instead of paying for both separately.
Step 3
Cancel all and any services you don't need. This is the easiest way to come up with extra money to cover bills and expenses. This includes add-on services on utilities, but also subscriptions to magazines, gym memberships and any other expense that you've been paying automatically for but not really using.
Step 4
Get a second job. You may not have the time or energy to work the night shift, but you can always find ways to earn a little extra cash in your spare time. Work on weekends if possible. Or take up dog walking, babysitting or tutoring jobs as they come up. If you have a hobby like writing, painting or cooking, consider finding ways of making money out of it.
Step 5
Go through your house and round up things that can be sold for some extra cash. Sporting and recreational equipment (everything from treadmills to skis), baby furniture and clothing, excess furniture, appliances and electronics and even used clothes can all find a new home. Try eBay or your local Craigslist to get you started (see Resources).
Step 6
Talk to your bank or a credit counseling center about the possibility of applying for a consolidation loan. This will allow you to combine payments and reduce interest rates and late penalty fees. Your credit score will likely suffer from such arrangement, but the same is true if you are regularly late with your bills, and at least this way things will get paid.
Tips and Warnings
- Consider calling creditors and trying to arrange a payment plan. Companies are likely to agree to smaller payments or an extended payment period if the only other option is you defaulting on the payments. Explain your position, be firm and don't take no for an answer.
- While borrowing money from friends and family is usually a bad idea, you may find yourself in a position where this is the only option. If that's the case, put it in writing and treat it as a business transaction. This is key to preserving the relationship in good shape once money exchanges hands.
