Budget when you’re behind in bills

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Budget is the core of an organized monthly expenditure regime. Unless you have a budget, you will always hanging under a past due board. And this will result in a vicious cycle which can only be solved if you analyze your expenditures. You will need to analyze your income and expenditure list to for an easy solution in case you go over budget and running behind in the race.

A common delusion is that a “budget” is just about listing your expenditure or analyses of your spending. However know that you need to know you incomings and outgoings simultaneously. This will help you pulling up your socks to apply the right controls and make adjustments as needed. In case you are unable to settle all your dues, you would need to negotiate with your creditors and be consistent in settling your past dues. Here are some tips to deal with such a situation.

Sit down and know your expenses

To avoid immediate disasters, sit with a calm and composed state of mind to look at your budget. Prioritize you expenses and your ongoing dues. Order you immediate and daily needs on the top of your list. For instance you utility bills will take priority over your entertainment budget. Your grocery bill should not include items like popcorn packets or ready to make pasta but should include thing like pulses and wheat flour.

Assess the money you have in hand

Once you analyze your expenses and the cost attached to fulfill them, assess how much money you have as disposable cash. Try to utilize this disposable money towards payment of your unsettled bills. Again you should pay them as per priority order. Your medical and electricity bills should take priority over your internet or broadband connection statements. Try to clear your credit card outstanding as soon as possible due to heavy interest charges applied by the banks.

If you are unable to settle the credit card statements in full, contact your bank and try to settle for an EMI plan or a similar payment plan. Explain them your situation to avoid getting black listed by the banks. Pay in full for your mortgage and any other loan EMIs to avoid getting them sealed or freezed by the respective authority until the dues are cleared.

Deal with the situation confidently

In case you start getting collection calls, deal with the situation patiently. Let them know of your circumstances and try to negotiate. Be polite but don’t let them harass you. In case of harassment, you can connect with the consumer cell whenever you think the situation is going out of control. Catch up on your dues as soon as possible to avoid getting into a state of frustration and anger, which can make the situation worse.

Prioritizing your expenditure will relieve a lot of stress and help you maintain your budget each month. Eliminate unnecessary expenses whenever required and create a new budget for that particular month. Keep a note of your credit card or loan due dates to avoid falling behind the due date and paying heavy interest charges. Apply adequate control mechanisms to avoid financial instability.

About the author: Alia Haley is a blogger by profession. She loves writing on technology and autos. Beside this she is fond of cars and fancy dresses. Recently an article on  Bluetooth keyboard attracted her attention. These days she is busy in writing an article on recycled glass countertops.

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