by Katie-Ellen

Created on: April 16, 2011

What bites into your budget the most? What weighs on your emotions and mind financially the heaviest?  Living on a low income is one side of the story – addressing the impact of a tight budget to pay your bills versus having services cut off is another.

List your debts:

Take the time to write down a list of your old debts, their cost and any additional interest rates. Then list your current bills that you need to pay on a weekly, fortnightly or monthly basis and record a calendar budget, which estimates when your bills are due. Look at your credit card statements and take note of the interest fee percentage and how much and how will it take to pay off. Do your research and see if there is a better deal from another financial institution with a good name – watch out for money sharks that will readily take your money for massive interest rates.

Face the hardship:

This means that evading the issues of payment is not facing the hardship and making your money work within a budget. If you are ignoring messages on your phone, not answering calls from creditors or opening the mail – there is only one way: face it and write them down along with the service provider’s name and phone number.

Negotiate:

Marketing and competition is at its peak between banks, services, cell phone providers and so on. Contact each one and discuss your options so you can achieve the goal of paying your bills. Find out if they have optional payment methods. Some companies have budget cards for you to pay regular smaller amounts. The third is to find out if the service provider you are with is the best for the money you are paying. Compare companies and ask your service company if there are any options you don’t need – phone bills are loaded with gimmicks that you could possibly do without.

Today’s dilemma:

You are on a low income creating today’s dilemma but can your circumstances change? Look at what skills you have, your passions and interests. Can you search for a part-time job in any of those areas? If you have a young family, can you work from home to help ease the financial pressure of paying your bills?

Create or update your resume and take to related businesses in your area. Make it real: extol your qualifications, your experience, volunteer work, and what you have been doing prior to writing the resume. What are the benefits you can offer to your future employer and what personal positive characteristics can you offer the workplace.

Credit cards:

Can you freeze any credit cards; negotiate a reasonable payment option and stick to it to reduce the interest and the trap of spending what you do not have.

Quick cash to ease the pressure:

Is there something you can sell, or make? Some city papers have a free selling of goods option on certain days. Can you make or grow some produce and sell it at your local market to help boost your current low income.

Support services:

Is your financial situation really in need of some extra help?
How to keep up with the bills on a low income is certainly a challenge but it cannot be avoided because they do not go away. Sometimes, if your financial situation needs a professional, services are available through social support networks or church organisations. They teach about budgeting and know the best ways to address budgeting and mounting debts. Ask if you need their services and find out if there is a fee.

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