How to Pay Bills while Broke

Knowing how to pay bills when there is no money left can be unpleasant and stressful, if no plan is made.  As late fees appear, you could face legal action against you and loss of assets. In dire financial situations, it is imperative to prioritize payments and check options.

You should think carefully about paying bills while broke and talk directly to your creditors. Learn how to pay bills when little or no money is available after expenses.

Make Paying Bills a Top Priority

Prioritizing bill payments should be your first step. Decide which is the most important bill that you must pay like utilities. Consider which services, if unpaid, would have the biggest impact on your lifestyle. For example, unpaid bills for credit cards can amount to late fees and bad credit records, but usually will not make you lose any assets like defaulting on mortgage payments.

Consider goods or services that you can live without like Cable TV, gym memberships, magazine subscriptions, and expensive roaming plans. Check all service contracts and payment plans to know if any could be cut or dropped. Lowering or dropping some services may assist you in finding the necessary money to cover bills.

Make a budget with only needed goods and services. Ask friends or family for feedback on your budget to get a second perspective on where else money can be saved.

Negotiate with Your Creditors

It is imperative to communicate with your lenders if payments cannot be made. For example, if you lose your employment or suffer a financial hardship, contact lenders for possible payment arrangements or extensions. Lenders might be willing to assist you if contacted before multiple missed payments accumulate. For example, credit card companies might negotiate a new payment rate based on your current finances. Utility providers could provide advice about programs and agencies that help people pay their bills when financial trouble arises. Certain service providers may even waive early penalty charges.

Avoid ignoring bills, which can lead to bigger problems. If you communicate with your creditors, there is a chance you can have your payments temporarily reduced or deferred for later dates.

Income vs. Savings

Increase money available to pay bills by earning more money or reducing expenses. You should decide which expenses to reduce or remove. The remainder of your regular spending should be determined. After the least necessary expenses have been removed from your budget, use the available money to pay necessary bills. Search for extra ways to become more efficient like reducing power bills by using energy saving devices only. Any money that is saved should be used to pay bills.

If you find that you do not have enough money to pay your bills, there are many resources and options for you. Make a budget to manage bills based on your income and communicate with lenders to know your options. Improve your financial situation by reducing expenses and deciding which bills to pay first while broke. Once you have managed to pay your bills, create an emergency fund to avoid falling into the same financial situation.

This article is provided courtesy of Credit Season UK, a consumer finance website providing information and tools on payday loans and other personal credit services.

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10 Most common insurance myths

Insurance policies have become an important part of life with the increase in risks related to life and accidents. These policies can be very complicated and surrounded with a lot of false information. You must not believe everything you hear, because there are many myths associated with your insurance policies. 

The 10 most common myths are as follows: 

1. Benefits should equal premiums:

 Your policy is your buffer against severe financial problems and not to be used for daily ups and downs in life. You must not feel cheated if you have been paying premium for years and never made a claim. 

 2. Everyone needs life insurance:

For some even this policy is unnecessary. The policy is designed to give financial care to your dependents. This includes your children or any elderly person who depends on you. If you do not have any dependents, then you may not need the policy. 

 3. Only the breadwinner needs to be insured: 

It is generally believed that only the person who earns in the family needs to be insured. We tend to forget that duties such as house care, food preparation etc also must be taken into account. Thus a non-working spouse also contributes greatly to the budget; therefore even he or she should be insured for life.

 4. Your car not your responsibility if someone else drives it: 

Even if someone else is driving your car and causes an accident, you will be financially held responsible for it. 

 5. No need to insure old cars: 

According to statistical information old cars are the ones that get stolen the most, because it’s easier to steal them. 

6. Company will pay for a rental car if your car gets stolen:

This is not automatically included in your policy. Even if you have comprehensive and collision coverage the policy will not include a rental car. 

7. You need flood coverage only in a high risk area: 

All areas under a National Insurance Program are eligible to buy flood insurance. You must be insured if you live in a flood prone zone. 8. Umbrella insurance is for rich people: As lawsuits occur so commonly now, this policy is for all home, auto and watercraft owners and not just for the wealthy. 

 9. You don’t affect others when you don’t get insured:

 If you decide to be uninsured, you are indirectly affecting the lives of others. This will include the lives of those who are dependent on you. 

10. Red cars increase your policy premium: 

Many drivers think that car color is an important factor when it comes to paying premiums. This is not true at all.

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Has the gold bubble burst?

Fresh fears that the “safe haven” aspect of gold investing could be over hit investors last week with the news as “large institutions” began selling off their gold as February came to an end.

Commentators and financial advisors (as reported by a blogger for The Telegraph) think gold prices have started a downward trend and will eventually dip to around $1,000 per ounce.
This caused gold to dip in price by $100 in less than a day.

Key figures such as Brian Dennehy from Dennehy Weller speculate that there could be a final spike in gold prices and then a “large correction” in the gold price will begin, taking gold down to $1,000 an ounce. He thinks gold could even get as low as $700 an ounce.

Hope for gold prices

Of course, with every financial commentator saying that gold will fall, there is a bullion seller to say that no, the gold market is not over and that any dips in price are only temporary.

Ben Yearsley at Hargreaves Lansdowne says: “The gold price has remained high and gold shares haven’t really moved; therefore the disconnect between their profits and share prices remains.
“The world is still in an uncertain place; therefore the demand for gold will remain strong, underpinning the gold price and underpinning gold miners’ profits. So the outlook for gold shares remains good.”

Sell your gold while you can still profit

So who is right? Is Yearsley right with his optimistic view or is Dennehy right when saying that the boom is over for gold? Whoever is right, the message to investors seems to be very clear: sell, sell and sell some more.

If gold is booming, then selling makes sense; if only to avoid the dramatic fall in price that occurred last September. If gold is about to dip dramatically then the same rule applies. In this financial climate it does not make sense to hold onto a valuable, profitable commodity that changes in price daily.

How to get the best price for gold

Who knows if cash for gold prices will drop suddenly? Current market indications and subsequent research indicate that such a dip could happen. However, with the financial problems of the world still unresolved, gold could still climb back up to that $2,000 per ounce figure or even higher.

If you’re uncertain, and wish to still get a great price for your jewellery, the onus is on you to take control and sell gold now. Don’t wait for the market to change suddenly; which could leave you out of pocket.

Use our excellent gold price comparison service to find the best gold buyers for you.

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