Budgeting When You’re Behind On Your Bills

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Budgeting when you’re behind on your mortgage and utility bills can be challenging, but it’s essential to address these financial obligations to avoid further financial distress. Here’s a step-by-step guide to help you get back on track:

Gather all your financial documents, including bank statements, bills, and pay stubs, to get a clear picture of your income and expenses.

Make a list of all your debts, including the overdue mortgage and electric bills.

Contact Your Creditors:

Reach out to your mortgage lender and electric company as soon as possible to explain your situation. They may be willing to work with you to create a payment plan or offer temporary relief.

Create a Priority List:

Prioritize your expenses, putting essential needs like housing, utilities, groceries, and transportation at the top of the list.

Develop a New Budget:

Create a detailed monthly budget that accounts for all your income and expenses.

Cut unnecessary expenses: Identify non-essential spending, like eating out or subscription services, and temporarily eliminate or reduce them.

Negotiate with Creditors:

Work with your mortgage lender and electric company to negotiate repayment terms that are manageable for your current financial situation. This may include extended payment plans or temporary reductions in monthly payments.

Look into Low Income Home Energy Assistance Program (LIHEAP) for help with your utilities. Google what assistant programs are available in your community.

Seek Financial Assistance:

Investigate local or government assistance programs that may be able to help you catch up on overdue bills.

Stick to Your Budget:

Strictly follow your budget to ensure you allocate enough money each month to cover your mortgage and electric bills.

Start with the money you have in your account- TODAY.

Monitor Your Progress:

Regularly review your budget and financial progress to make adjustments as needed.

Financial Counseling:

Consider seeking assistance from a credit counseling agency or a financial advisor. They can provide guidance and resources to help you get your finances back on track.

Remember that addressing overdue bills may take time, patience, and discipline. It’s essential to communicate with your creditors, create a realistic budget, and stick to your plan to gradually catch up on your mortgage and electric bills while avoiding further financial strain.


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