Wednesday, February 18, 2009

Bill organization

One of the biggest things that cost us money is late bill paying. Sometimes stuff doesn't get paid, then there are penalties and late fees all adding up into quite a bit of money per year. Having a good system can help.

1. Sort your bills. Sort them into folders for pay now, next week, or next month. Better yet get a bill organizer and sort by due date. Make sure you pay each bill a week before it's due and sort accordingly.

2. Mark your calendar and make sure you send them out on time.

3. Set aside 20 minutes each week to pay bills.

4. Save your old bills for 2-3 months in case there is a question. Someone contacted me recently as their own record keeping was poor but I was able to go right back to the check and ask the bank for a copy of the canceled check.

5. Use auto pay. You can sign up with your bank, or set it up with the creditor yourself.

What if you are having problems? Prioritize your bills.
1. Keep a roof over your head.
2. If you need a car to get to work, make your payments and make sure you have gas to go to work.
3. Keep the lights on.
4. Make all other unsecured debt a lower priority. Make sure you communicate with them though. Many times they will give you a grace period, lower your interest rate, etc. to help you out. When I began paying off my debt I made a list of everything I owed and I sent it to each creditor and asked them for help in making good on the debts. I can't tell you how surprising the responses were. Some lowered the payments, some agreed to drop the interest and penalties. It was amazing what happened when I just got honest with myself and with my creditors. One bill alone saved me thousands by my honesty.

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