When the bills begin to pile up many families are forced to decide which ones take precedence over the others. Sometimes, we just can’t pay everything on time. You don’t want the power or the water to get shut off, but you don’t want to pay those exorbitant late fees that accrue on other bills either.
If at all possible, try to pay those which add high late fees first. Call utility companies and see if you can get an extension or make other payment arrangements so you can pay another bill now and pay the utility company later. Many times, they will be willing to work with you, because they know you will eventually pay them if you want to continue using their service.
Also, ask about partial payments or deferred payments on loans, car payments, or mortgage payments. If you go ahead and pay the interest, you may be able to defer the principal payment to a later date without penalty. Be sure to find out all the details. Later, if you are able to do so, make an extra payment and apply the full amount to the principal.
Be sure to inquire whether or not you are being charged additional fees for payments by phone or payments that are automatically taken from your bank account. While many companies provide these services free of charge, some do not. If you are paying an additional $5.00 per month for automatic payments, that money could be applied to paying your bill. While $5.00 might not seem like much money, it adds up over time.
Also, be sure to learn about any discounts for which you may be entitled. For example, many auto insurance companies offer discounts based on age, marital status, driving record, number of vehicles, and mileage. Have your policy reviewed from time to time to make sure you are receiving every available discount. Some discounts may be retroactive, so have the policy reviewed before paying your bill.