Cope & Don't Borrow More

If you know you are going to be late with a rent, utility, or mortgage payment, contact your creditor as soon as possible and explain the situation. If the bill does not carry interest, ask if you can make a payment arrangement. You might be able to delay the payment until your next paycheck arrives. You also may be able to set up a repayment schedule that allows you to stretch out your payments over time. Before agreeing to this, ask if there are any fees or extra costs for the service. Remember that getting behind on your payments may cause your credit rating to drop.



Some employers will allow you to have an advance on your paycheck. This is not a loan, but is actually money that is taken out of the amount of your next paycheck. If your employer allows this, keep in mind that there may be a limit on how often you can request an advance. You shouldn’t depend on this as a regular means of handling your debt.

Do not purchase expensive items until you have the cash available to do so. Even if it is a car repair that you need to have done, you can often put that off a few months by taking public transportation. You can also look into a carpool arrangement with other co-workers who live near you. This gives you the chance to collect the cash you need for the car repair.

You can always use your emergency savings instead of borrowing, but you should immediately start rebuilding the emergency fund for future needs. This means paying yourself on a regular schedule just as you would your other creditors.

There are local charities and community programs designed to help families who cannot make ends meet. Take advantage of these. Also, you can sometimes apply for assistance programs for certain bills, such as utility bills.

Check into the possibility of working more hours to earn extra cash. Overtime pay is a great way to add to your income. Go through your basement, closets, and garage to see what you can sell that you no longer want or need. There are online sites where you can sell your personal items or consider having a yard sale. The money you make from these sales can go towards paying your bills.

Another option is to adjust your withholdings so you have more money in your paycheck each week instead of getting a big tax refund at the end of the year. However, do not withhold too little, because that will cause you to owe taxes in the spring. If you qualify for an Earned Income Tax Credit, find out if you can get that credit applied to each paycheck instead of receiving it at the end of the year at tax time.