How To Budget When You Are Already Behind

There is no worse feeling than being behind on bills. Today I’m going to help you learn how to budget when you’re already behind on your bills. 

Chances are, you want nothing more than to throw those past due letters in a pile and pretend this isn’t really happening to you. But the first step to getting your budget on track when you’re behind is to look at your overall financial picture.  

Step One: Assess Your Current Financial Situation 

Step 2: Analyze Your Current Spending

If you are behind on bills, it is no surprise that your current spending exceeds your income amount. The hard thing to figure out is why that is happening and what you can do about it. 

Categorizing your current expenses will help you figure out what you absolutely must pay and where you might be able to cut back. There are 3 major groups to sort your expenses into. 

Debt Regular bills  Variable expenses

Decreasing your spending is a great way to get your budget back on track if you’re behind on bills.

Step 3: Try To Decrease Your Spending

Side Hustles Sometimes you cut all you can cut, and your bills are still crushing you. One option to deal with this is to increase your income. 

Step 4: Increase Your Income

Sell Your Old Things Another option for making money fast is to sell your old junk. You can host an online yard sale that can bring in several hundred dollars in a short amount of time.  

Even if you can make ends meet by cutting back on your spending and increasing your income, you need to talk with your creditors. They may be willing to work with you to reduce your monthly payments or interest rate.

Step 5: Speak with Creditors to Make a Payment Plan

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