Nothing feels so much like being stuck between a rock and a hard place so much as being behind on bills. But what if you’re just not ready to talk to anyone about it yet, collector or not?
But you don’t need another person to help alleviate the burden of debt. Here’s how to start getting organized, making decisions and protecting yourself on your terms.
Step 1: Know What You Owe
Even if you’ve avoided looking at your bills for a while, now is the time to lay everything out in one place.
- Make a simple list of every account where you owe money. Include credit cards, personal loans, Buy Now Pay Later programs and medical bills.
- Write down each account’s balance, due date and minimum payment (if one applies).
Step 2: Decide What You Can Actually Pay
Once you know what you owe, the next step is figuring out where to put your focus first.
Start by reviewing your current income and expenses. Your two goals in laying everything out are to protect your budget for basics — like housing, food and utilities — and to avoid overextending yourself. You should be able to see how much you spend in a month vs. where your extra funds are currently going. With this information in hand, you can start taking some small steps.
Step 3: Set a Short-Term Plan
Especially if you’re new to budgeting, give yourself the gift of flexibility. Start with a 30-day plan you can handle, like the “snowball” or “avalanche” methods.
As with any plan, the best kind is the one you can stick to. And remember: Don’t wait to be “ready.” Perfect is the enemy of good!
Step 4: Prep for Future Conversations
Even if you’re not ready to speak with anyone now, you will probably need to soon. Make that future call easier by gathering your documentation now.
- Save copies of bills, statements, and payment confirmations.
- Keep a simple journal of what you’ve paid and when.
- If you pause payments, jot down why — for example, job loss, medical issue, or emergency expense.
When you’re eventually ready to talk to your debt collector, lender or a financial expert, having this information on-hand will help you explain your situation clearly and with less stress.
Step 5: Know When to Get Help
If your list of bills keeps growing, or you’ve tried to catch up but nothing is changing, that’s a signal that it may be time to get outside support.
- If your debts are under $10,000, try reaching out to a non-profit credit counselor.
- For larger debts, Accredited Debt Relief’s debt consolidation program can help you save 40% on eligible minimum monthly payments — and get you debt-free in as little as 24-48 months.
- For overwhelming debts, bankruptcy can be a life-saver.
Reaching out for professional help can make a major difference in the amount you pay and the time it might take to get debt-free. So good on you for investigating your next move: You’re on track to confront your debt!