Opening bills is probably the least exciting thing you’ll do with your day. I know it’s not a great time for me. Nobody enjoys reading endless letters telling you how much of your hard earned cash you have to spend. It’s a whole lot worse when you open a bill and it’s way more than you thought it was going to be. If you aren’t prepared and you haven’t got the money there, you can quickly find yourself in a sticky financial situation. Other unexpected bills like car or home repairs can also cause you a lot of trouble if you aren’t ready. Read these simple tips on dealing with unexpected bills to make sure that you don’t land yourself in trouble.
Most of the time, the bill is going to be correct but mistakes can be made so before you part with any money, just make sure that it’s right. Call up whatever company has sent you the bill and get them to go through exactly what it’s for. If anything doesn’t seem right to you, challenge it. You might be able to avoid paying a huge bill if they’ve got it wrong but it’ll be a lot harder to get your cash back if you notice a mistake after you’ve paid.
If you haven’t made the right preparations for bills that come out of the blue, you’ll have to borrow the money to do it. Putting it on your credit cards isn’t always the best idea, especially if you’ve already got a large balance on there. You’re better off getting a short term loan from somewhere like prettypenny.co.nz instead. When you’re borrowing money to cover a bill, you need to make sure that you’re paying it off as quickly as possible and you learn from that experience so you can better prepare if it happens again in the future.
If you’re sensible with your money, you will have already drawn up a good budget. Eating into your normal budget to pay off large bills is going to mess everything up for you so you need to start a separate fund. Having an emergency fund that you pay into each month makes things so much easier because you don’t have to rush around trying to organise your finances and work out how you’re going to cover those costs. You’ll already have the money at hand and you won’t end up having to borrow.
If you don’t have an emergency fund or you haven’t got enough in there to cover the full cost of the bill, that doesn’t necessarily mean that you have to borrow. Before you do that, you should exhaust every other possibility first. Most companies will be understanding about the fact that they’ve slapped you with a big bill and you might not be able to pay it all up front. You should call them up and ask if you can set up a payment plan to make things more manageable.
The most important thing to remember is not to panic when you open that bill, just follow these steps and you can pay it off no problem.