How to Pay Off Multiple Bills

Having multiple bills to pay can create a lot of financial stress in your life. The total may seem overwhelming, especially if you can only afford to pay the minimum payments each month. People can experience hard financial times when they start to put necessities on credit cards because they cannot afford to take care of their daily needs. Others take advantage of "sales" by using credit cards to buy a bargain when they really cannot afford it and never consider the high interest rates as part of the price. Paying off these bills requires patience and perseverance, but it is obtainable.

Instructions

1

Create a savings for emergencies so that you never need to use credit cards to supply necessities for your family. Try to keep a balance of at least $1,000 in this account and make sure you distinguish between real necessities and something you desire before removing any of the money.

2

Start minimizing your debt by clipping coupons for items you always buy and cutting out unnecessary expenditures, such as the latte on the drive to work and eating out.

3

Save every extra penny that comes into your household and pay it on your smallest debt, recommends Dave Ramsey. Alternately, you may want to decrease the debt by paying on the bill with the highest interest rate, according to Suze Orman.

4

Create additional income by temporarily taking on a second job or having a large garage sale.

5

Choose to focus on the smallest debt or the one with the highest interest, but pay every spare penny on that bill. Once it is gone, take the extra money you now have and pay it toward the second smallest bill or the one with the second highest interest rate.

6

Repeat the method until all your bills are paid.