28 Apr
2010

If you cannot pay your bills this month, there may be many reasons. You may be over your head in debt and that excessive debt may have finally caught up with you. You may have had a genuine emergency which harmed your ability to repay your bills. In some cases, you may have lost your job and may have no cash to pay. Any time you miss a bill, your credit rating is affected. However, the consequences of different bills being unpaid vary widely.

Some unpaid bills will just affect your credit rating. Others may have worse consequences. In most places, for example, not paying your rent for even one month may allow your landlord to start eviction proceedings against you. In many cases, not paying  a mortgage can also get your home foreclosed in as little as three months. In general, you should do everything in your power to pay your home costs first.

Begin by trying to get cash before your bill is due in any way you can. Have a yard sale or put some unneeded items on sale through classified ads to generate cash. Take on temporary work that pays instantly in order to generate some extra cash. As a last resort, consider a payday loan or credit card advance to pay your home costs. Even though this is expensive, it is better than being evicted.

As for the rest of your bills, prioritize them. Focus on bills that will leave you with the most dire consequences. In general, focus on paying the minimum on your credit card, as well as your utility bills, phone bills, and any bills that are needed for you to work. You usually have a little more time with student loans and medical debts. However, with any debts you can always call the lenders to work out a repayment plan. This is always better than not paying your bills and ignoring the consequences.