Are you finding that after paying your basic living expenses (like food), that you're left with little to no money to pay for your bills so you just simply ignore them? You are not alone! Managing your finances can be extremely challenging and so getting caught up in a cycle of ignoring your bills is really easy. It is important that you recognize the impact that this cycle can have.
Here is how ignoring your bills can affect you:
1) You'll accumulate interest and late charges.
2) Your credit rating will suffer.
3) You'll have the burden of creditors constantly calling.
4) Your health may suffer. Financial stress is one of the leading causes of chronic health problems and may even result in a mental breakdown.
If you have been ignoring your bills, the first thing you will need to do to break this vicious cycle is craft a budget. Gather your income versus your expenses and find ways to shave down expenses where you can. Once all your expenses are listed you can review them and find places that you can save money. That extra cash can be used to catch up on the bills you have been ignoring.
It's also wise to get your True Assess Financial Report Card. Your financial report card will lay out your current budget and help you deal with the strengths and weaknesses that exist within your financial profile.
You can find savings in your budget by looking at each "non fixed" expense (like food) and find ways to reduce the expense by 15%. Clip coupons, look out for sales and shop around for the best deals. Sometimes threatening a company to go elsewhere is an effective tactic but you must be prepared to actually transfer service from your current provider.