Guest Author - Rhonda Cliett

At one time or another we may be faced with bills that we cannot pay. We may be coasting along fine and then we are hit with an unexpected curve ball that throws us into the perilous world of temporary poverty. That curve ball might be an unexpected illness, lost job, unexpected car repair, or a broken water heater. Whatever the issue, we are now faced with bills we cannot pay. The important thing to remember is that you do have options and there are steps you can take to get you back on track.

First, gather the family and discuss the situation. Together you need to establish ways you can temporarily change your spending. Some changes to consider are: eating at home rather than eating out, packing school lunches rather than purchasing lunches at the cafeteria, drying dishes by hand rather than using the heat/dry setting on the dishwasher, hanging clothes on the line rather than using the dryer. Once your family starts brainstorming you will discover even more ways to save money temporarily.

Second, prioritize your bills. Your ranking may resemble the following:

Highest Importance: Mortgage, Utilities, Car Payment
Medium Importance: Secured Loans (i.e. TV, dryer, bedroom furniture)
Lowest Importance: Unsecured Loans (i.e. credit cards, medical bills)


Determine what you can pay based on this level of prioritization. Next, call your creditors immediately and discuss the situation with them. Be very honest in explaining the details of your current finances, the facts that led to this situation, and your expectations for the future of your finances. Some creditors may allow you to skip one month’s payment entirely. This will cause you more in interest in the long run but it allows you a temporary reprieve. Some creditors will allow you to make a lesser payment for a particular month. Some utility and phone companies will allow you to pay the current bill in installments over the next few months. Most creditors will work with you because they recognize you are trying to handle the situation in a responsible manner. They also know that helping you through a temporary crisis will most likely put you back on solid financial ground allowing you to eventually pay your entire debt owed them.

Temporary changes in spending, prioritizing bills, and calling your creditors are steps to take which will allow you to regain your financial footing.