3 Step when you don't know What do you do when you can't pay your bills?

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What to Do When You Can't Make the Minimum Payments

Step #1: Lighten the Load

Your first goal is to get and stay current on all of your bills. That means you need some extra cash—and fast! Sell that expensive car and get a cheap-but-reliable older model.Make money online  stuff envelops , writing jobs there are millions of work from home job and they are legit great for fast cash. Get  tips here

Step #2: Use the Pro Rata Plan

The next step is to set up a pro rata plan for paying your bills. Pro rata means "fair share." You give each of your creditors their fair share of the money you have left after you’ve paid for the essentials. Here’s an example of how that might work:

Step #3: Send Payments With a Letter

You’re almost done. Make copies of your math, including your income, expenses, disposable income, and the calculations you made to give every creditor their fair share. Include this letter with every bill, every month.

Your creditors won’t like getting less than the minimum payment, but if you keep sending checks every month, they’ll probably keep cashing them. You’ll still get phone calls and people will still try to bully you into paying more, but don’t let that rattle you so much that you agree to some stupid arrangement you can’t afford. And never, ever give a creditor access to your bank account for automatic withdrawal every month. They’ll clean you out—even if they say they won’t. Problem not solved.

Related: What Collectors Can (And Can’t) Do

Now What?

Remember, the pro rata plan is only a short-term solution. It just gives you enough breathing room to make long-term changes for the better. Get a second job until you’re caught up and current with your bills. Consider downsizing your home so you can make more manageable payments. Switch your cell phone plan to a pay-as-you-go service—and use your phone only for emergencies. Get a roommate and share expenses. You have options!

Most importantly, you must learn to hate debt. Get mad at it. Attack it full-force. It’s not your friend. If you don’t change your behavior and your attitude, you’ll be right back where you started—in a hole. You don’t ever want to go there again, so do whatever it takes to say goodbye to debt for good!

Grow your own business

It might seem overwhelming in the moment, but stick to it! Imagine how amazing it will be to get on the other side of this mess. You can achieve financial peace, one baby step at a time.

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