Always avoid late payments

Late payments and ostriches don’t mix

It happens to everyone at some point in life. When you live paycheck to paycheck with no cushion in savings, you are just one flat tire away from falling behind on bill payments.

Don’t retreat to your bed with a bowl of ice cream and hope it will all go away. Get your ostrich head out of the sand – this is the time to scrutinize your bills more closely than ever. Most utilities and credit companies have grace period policies ranging from a few days to a month. Some of them do not.

As soon as you know you can’t cover all of the bills due, make a priority list.

1. Pay bills that have no grace period and charge hefty late fees.
2. Pay bills that have no grace period and any late fees.
3. Pay partial payments on remaining bills, reserving enough for food and gas until your next paycheck.

Want to make sure it doesn’t happen again? Adhere to a strict budget that includes contributions to an emergency savings account.