Bills don’t go away...even if you don’t want to pay or can’t pay!
General Information
When you put a bill in your name you are responsible for paying it whether you are financially able to or not.
If you cannot pay a bill, call the company! Many will work with you to establish a payment plan rather than lose a customer or put you into collections. The worst thing you can do is ignore your bills and hope that “they go away.” If you don’t do anything or don’t come to an agreement, your bill will go to collections company who is responsible for making sure companies get paid for past due debts; this will negatively impact your credit score, and lead to harassment from debt collecting agencies.
A negative credit score could hurt your ability to get things like a cell phone, internet, or a car (these require a payment plan, which requires good credit).
Here are some tips to consider that may help you organize your bills and pay them on time. But be careful when using auto-payment options with credit cards. Be sure you read about what you’re signing up for, and how you can cancel auto-payment if needed.
1. Create a filing system of paid and unpaid bills. Keep all of your bills together and track due dates for bills and any annual renewal of services so that you are prepared.
2. Based on the schedule of when your bills are due and when you are paid, choose a day every month to pay your bills. For example, if you get paid on Thursday each week pay your bills every Friday. Make sure to pay your essential bills before spending on extra expenses.
3. Immediately write down when you pay your bills (including date paid) and file this in your paid folder. You should either get a confirmation number or a receipt for each paid bill so you have a record should issues arises later.
4. By tracking your expenses, you are less likely to overdraw your account and face overdraft penalties or fees.
5. There are mobile apps that can help you track your bank accounts and budget. You can request email notifications from your bank when your balance drops to a certain level.
Resources
Calculate your paycheck and budget for expenses you can visit www.paycheckcity.com.
For help organizing your bills and creating a budget visit www.mint.com.