March 14, 2018 · Last update: 25/10/2023

• Advice

What To Do When You’re Overwhelmed With Bills

Introduction: Drowning in Bills? Here’s Your Lifeline!

Ever felt like you’re on a sinking ship of endless bills? We’ve all been there at one point or another, feeling the weight of due payments, deadlines, and the panic of how to juggle them all. Putting your head in the sand should not be your next move. Don’t stress! Here’s your step-by-step guide to navigating these stormy financial waters and finding safe harbour.

Don’t Play Ostrich with Your Bills 

No matter what, do not put your head in the sand and try to ride this out. Because my friend, it isn’t going anywhere! It’s really important to make sure you tackle the issue head-on. If you leave important invoices until they’re late, chances are you will be hit with extra fees and perhaps loss of services. If it goes on long enough, you might also find that you end up with collections charges, which are not only horrendously expensive but can also affect your credit rating. It’s time to pull your head out of the sand, face those bills, and cut down on future headaches.

Crunch Those Numbers! What can you pay?

Time for some financial housekeeping. Lay out all your dues, deadlines, and the money you’ve got coming in. By assessing your situation, you’ll find clarity on what you can pay. It might feel overwhelming looking at all of the bills that need to be paid, but trust me, you need to know where you stand financially, so you can make the RIGHT next move!

Flexibility is Key: Dive into Payment Plans

Most companies will allow you to work out payment plans for bills. They generally prefer getting their money at a later date than not getting their money at all, or having to chase you and incurring all the associated costs.  Talk to each individual company and see what can be arranged – you may be surprised at how flexible they can be.
Even banks will usually try to help you if you are suddenly overwhelmed for a legitimate reason. For example, if the mortgage is going to cause you huge grief because you have lost your job, then talk to them before you miss a payment and see whether they can offer any alternatives. Any assistance will only be short term but might be enough to help you over the hump.

The main negative impact of working out a payment plan is that you need to realise that you are pushing those costs out over a longer period of time.  If regular bills are the problem, then before you know it the next instalment is going to hit your mailbox. You need to be prepared for that and make sure that you are very frugal over the coming period to allow for it.

Consider Debt Consolidation

If you are in a serious financial hole, then it may be a good idea to consider a debt consolidation loan. Consolidating your debt helps you combine all of your debts into a single regular repayment over a longer period of time. If credit cards are part of the problem, they will be cleared and cancelled so you can’t just add more debt and end up back where you started. They really do help to take some of the struggle away and give you a way to see yourself clear.
If you think this may be what you need, make sure you contact a reputable NZ company like Crester Credit. The last thing you want is to end up with a loan that will cost you the earth and put you in a worse place.

Dominate Your Debts: Strategise and Prioritise!

When faced with a jigsaw of debts, knowing which piece to place first is key. Dive into the specifics of each debt. Identify which ones carry the heaviest interest rates or the steepest late fees. On the other end, pinpoint the smaller, easier-to-clear debts. By tackling the most pressing debts first, you can minimise accumulated costs. But, if you’re feeling overwhelmed, there’s also merit in clearing smaller debts first for quick wins and boosted morale. Whichever path you choose, the goal is to methodically work your way through, gaining more control with each debt you conquer.

Quick Tips to Remember:

• Face the Problem: Confronting your debt is the first step to freedom.
• Communication is Crucial: Always communicate with creditors about any payment struggles.
• Seek Guidance: Financial advisors or tools can provide clarity and direction.
• Stay Updated: Regularly monitor your dues and adjust your budget accordingly.

 

Conclusion: Financial Fitness – More Attainable Than You Think 

Facing a mountain of debt can feel insurmountable, but remember, every mountain can be climbed one step at a time. With the right strategies and persistence, you’ll soon find yourself on top, enjoying the view of a debt-free landscape. Keep educating yourself, and remember, you’re not alone on this journey. Continue exploring our blogs for more guidance and together, let’s aim for that financial freedom.

Once you’ve got it sorted, you really need to focus on working on an ongoing budget, so that you don’t end up in the same place!  Get some help from people who know what they are doing, or read our blogs on budgeting here for more helpful tips and advice.