Falling behind on your bills can be frightening, especially when the cause was beyond your control. Sudden loss of employment, illness, or even family emergencies, can leave you facing a cash crunch. If this is your first time falling behind on your bills, you may not know what to do. Here are four suggestions that will help you out of your current financial situation.
Contact Your Creditors
If you've recently fallen behind on your bills, the first thing you should do is contact your creditors. You may be tempted to ignore them, and pretend the problem will go away on its own, but that's the worst thing you can do. As soon as you're facing financial problems, you need to talk to your creditors.
If you think that the financial issue is going to be a short-term problem, talk to your creditors about payment extensions. If you let them know when you're going to pay, they may be willing to waive late fees. They may also be willing to forgo credit bureau notification, which means your credit rating won't be dinged.
If your financial problems are going to be a long-term problem, talk to your creditors about renegotiating the terms of your contract. In some cases, they'll be able to lower your payments, extend the life of your contract, or put you on a delayed payment schedule for a few months. This will allow you the time you need to get back on your feet.
Talk to Your Boss
If you're facing looming payments, and not all your creditors were willing to negotiate, you should talk to your boss about an advance on your pay. Many employers provide advances for emergency situations. You'll be required to pay back the advance through small deductions from your future paychecks.
Ask Friends and Family
If negotiations and pay advances have not worked, sit down with your family and friends. Ask them to consider lending you the money you need to get out from under your current situation. To prevent hurt feelings, or damaged relationships, be sure to have a plan for repayment already in place before you sit down with them.
Take Out a Short-Term Loan
If you've exhausted all other avenues, it's time to consider taking out a short-term loan through a loan company. Six-month cash loans allow you to borrow the money you need without lengthy loan applications, or collateral. These loans are an excellent way to get the money you need when an emergency situation pops up.
For more information, you will want to contact a company such as Wilmington Jewelry & Loan.