Managing overdue bills
How to get out of debt 101
3 minutes
It can be a heavy burden when you fall behind on mandatory payments including bills and loans
Before you decide to flee the country, ask yourself the questions below to help you alleviate your concerns:
1. How much do you owe?
First, list down any and all of your debts.
These could include unpaid bills, overdue loans, fines or any other money that you owe.
Then, note down what your monthly obligations are. Formal borrowings in the form of credit cards and loans will often have a repayment schedule which needs to be followed. By the end, you must be aware of what your monthly obligations are.
If a periodic payment was missed, include these in the total.
2. How much can you pay?
Check how much money that you’re expected to receive and figure out how much that you’re planning to spend.
Be well aware of when your next salary payment is or if someone owes you money. Some employers can arrange to pay your salary in advance for exceptional circumstances.
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Finally, see if you can borrow some funds from a reliable and supportive source such as your family or your friends. There is no shame in asking for help although it is better to have already established a savings fund that you could rely upon.
3. What payments are the most important?
As George Orwell once said, all expenses are equal, but some expenses are more equal than others. Okay fine, it’s paraphrased but you get the point.
Missing certain payments can result in large consequences. For example, failure to repay the electricity bill may mean that you risk facing a disconnection. Similarly, for assets, you could face the threat of repossession. Or worse, legal action.
Some institutions may instead simply fine you for delayed payment instead of withholding their service.
Read through their terms & conditions, or give them a call, to know what you are facing exactly.
In a worst-case scenario, if a bill is already due, but you know that you have an incoming source of funds (salary for example), bearing a little bit of fine may not be the end of the world.
Pro Tip!
If you have a visibility on your inflow of money and know where you stand for each obligation, focus on paying the most important dues first.
4. Is requesting for leniency possible?
Several institutions have assistance plans in place to help you.
These could include options to repay large sums in instalments over a longer period or a waiver of penalty fees.
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Speak to the service provider to understand the options that you have such as payment by installments.
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Feel free to use our letter template to draft your request.
This too, shall pass.
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It is a difficult position to be in but eventually you can recover.
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If you feel overwhelmed, speak to your close ones for support - we do not engage in these conversations often enough.
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You may also consider speaking to a trained professional to ensure your mental health wellbeing.
