In recent months it is being reported that increasing numbers of households are having difficulties keeping up with expenses. There are a number of reasons for this, but most often it is because of a cut back in the number of hours being worked and a freeze in wages not in keeping with inflation.
It stands to reason that a household in which those earning an income have lost their jobs will have difficulties keeping up with bills but a great number of households still have an income and are unable to make ends meet. This is where you need to get creative.
A complete list of monthly bills should be analyzed. The ones which need to be paid to sustain life must be paid first and these are called priority debts. Many households don’t even have enough income to deal with these let alone all those credit cards and other loans which they have accumulated over the years.
On the list of priority debts would be such things as rent/mortgage, electricity, utilities, food, medicine and clothing. These are all necessary to sustain life as you need a roof over your head, food in your stomach, clothes on your back, medicine if you’re sick and a way to cook the food you are buying.
Many shoppers have begun looking for own-name labels from some of the larger supermarkets because they are much cheaper. Those same shoppers find 2-for-1 deals and coupons which can save them additional money. There was a segment on the American show Extreme Couponers that showed supermarkets actually owing customers money after the coupons were redeemed.
That may or may not have been reality, but the point is, find deals on things which can be discounted. This will free up money to be paid on priority bills with a little hopefully left over for other bills which may have gone delinquent. Get creative when chipping away at that mountain of debt.