How to prioritize your bills during tight times

By Dr. Nicole Garner Scott

I live by the philosophy of being proactive rather than reactive when it comes to to your livelihood. I am sharing a few things to consider and items to organize on your to-do-list when it comes to prioritizing your finances if times ever get tight. For more resources on this topic, make sure you check out my insights on www.AmountFinancial.com

1. Food

At the top of the list is food. You either need money to buy food or you’ve got to come up with a way to get food. Reminder to be proactive and not reactive 

While you don’t get a monthly statement for the money you spend on Uber Eats,  groceries or delivery, feeding yourself and your family is the most important category in your budget. You’ve got to figure out how much you need to live on and how you’re going to pay for it.This might be the time to get creative with stretch foods, fresh foods and securing additional resources (i.e. School Systems and Churches) 

In the meantime, any cash you do have should be spent on food before you move on to other bills.

2. Housing

Next would be paying for your housing because you need to maintain a place to live.

• If You Have a Mortgage 

President Trump announced March 18 that he’s instructing the Department of Housing and Urban Development (HUD) to immediately halt “all foreclosures and evictions” for 60 days.

Still, if you can afford to pay your mortgage you absolutely should do that.

If you know you’ll be struggling to make your April or May payment, you’ve got to get in touch with your mortgage company immediately.

Stay in touch with them about your inability to make a mortgage payment. They’ll advise you what to do and what kind of options are available to you, which may include deferring payments for several months.

Lenders are much more likely to work with borrowers who communicate with them about their circumstances early and often.

• If You Are a Renter

Similarly, if you are able to continue to pay your rent you should.

But if that’s not going to be possible, you should let your landlord know ASAP. They may be willing to work with you on a plan.

Most apartment complexes are owned by big real estate trusts or big investment groups. So far, there’s been no movement, no willingness, for apartment managements to offer any assistance or accommodations to people who’ve been laid off because of coronavirus. Almost certainly, that’s going to require action by state legislatures or the U.S. Congress.

As you attempt to work with your landlord, keep an eye on reputable news sources both nationally and locally to see if any assistance is being offered.

3. Transportation

Depending on the city in which you reside, reliable transportation is usually a necessity (unless you have a very advanced transit system). 

Again, if you can pay what’s due on your car loan each month, pay it. If you find yourself short after you’ve taken care of your food and shelter, you should contact your lender as soon as you know you won’t be able to make a payment. The big thing not to do is hide from it. 

If you don’t make a payment and don’t communicate with your lender, you may risk repossession.

However, the lender does not want your vehicle. They have a direct incentive to work with you for a while to see if you can get back on your feet. That’s why you stay in contact.

4. Utilities

You should still pay your utility bills if you can, but what do you do if you have spent all you have and you still owe for power, water and internet?

There are not standardized policies, however, many state regulators have outlawed shutoffs for now for electricity or natural gas.”

Look on their websites for coronavirus accommodations and how you ask for assistance. Again, don’t ignore bills — stay in contact with each company if financial hardship puts you behind and you can’t pay.

Additionally, several internet providers are offering slower speed connections either for free temporarily or ongoing at around $10 per month.

You should also keep in mind that answers and procedures will likely keep changing as the weeks go by.

A no now may become a yes next week.

5. Unsecured Debt Like Credit Cards and Personal Loans

The lowest priorities are any unsecured debt. That’s credit cards, any personal loans — anything that is not absolutely necessary.

Still, you are probably well aware that not paying could have long-term negative impacts on your credit, so you should continue to pay if you can.

Again, getting in touch with your credit card company or personal loan provider is key if you aren’t going to be able to meet your obligations.

These companies have a variety of tools at their disposal to help during times of widespread crisis. Some of the common ways they work with borrowers include:

Extending your payment deadline

Lowering your annual percentage rate (APR)

Waiving a late fee

Allowing you to skip a payment

What are some ways that you are being resourceful with your money? Sharing is caring! Drop your tips below 

Dr. Nicole Garner Scott is the Founder and senior money coach for www.AmountFinancial.Com

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