What to Do When Bills Are Too Much

It can be incredibly stressful when you constantly try to keep your head above water regarding bills. You're not alone - according to a recent study, 60% of Americans don't have enough savings to cover a $1,000 emergency.

If you're struggling to make ends meet, here are three things you can do to get some relief.

Loan Modification

One option is to modify your loans. This means working with your lender to change the terms of your loan so that it's more manageable. This can involve extending the length of the loan, lowering the interest rate, or changing the type of loan from a variable-rate loan to a fixed-rate loan. 

A loan modification is a good option if you're struggling to make your current payments but think you'll be able to eventually catch up.

Negotiation

Negotiation is often a good option for people who have a good history of making payments on time but are struggling due to a change in circumstances. 

When you contact your creditors and ask them to lower your interest rates or change the due date of your payments, you are effectively negotiating with them. 

This can be an effective way to get relief from high-interest rates or monthly payments that are difficult to make. Of course, not all creditors will be willing to negotiate, but it is certainly worth asking. 

If you can successfully negotiate a lower interest rate or more favorable payment terms, it can make a big difference in your financial situation.

Creating a Budget

The last option is creating a budget. This means looking closely at your income and expenses and coming up with a plan to best allocate your money. 

This can involve cutting back on non-essential expenses, such as entertainment or eating out, and redirecting that money toward paying down your debt. 

Creating a budget is a good option if you're not currently able to make all of your minimum payments, but I think you could if you were more mindful of where your money was going each month.

If you're struggling to make ends meet, know you're not alone. There are options available to help you get relief from your financial burdens. Loan modification, negotiation, and creating a budget are all viable options depending on your individual circumstances. 

Don't hesitate to reach out for help if you're feeling overwhelmed - some people can assist you in getting back on track.