How many bills do you get every month? You might have a mortgage payment, a car payment, heating, electricity, gas, telephone, and TV bills, and that's not even counting your credit card and store card payments. The truth is that people have more monthly obligations now than ever before. And it's easy to forget to pay a bill on time when you have so many.
Then there is the completely different question of whether or not you can pay all your bills. Sometimes, we may have just spent more money than we can afford, so we may not be able to pay all of our bills when they come due. And what would happen if you lost your job, got sick, or otherwise couldn't work? Even if this is just for a short time, you will have a hard time paying all of your bills every month.
Penalties
This can be disastrous. First of all, if you pay late, most creditors will add late fees and other administrative costs to your account. If someone has security over an asset, they may try to get it back or try to get it back. This is the worst when it comes to your house, but it can also happen with your car or any other item you bought in instalments, like a TV or computer.
How can you make sure that this will happen? Well, having some money saved up is a great start. If you lose your job, this should help you get by for a few months. Then there's the fact that it might not be a good idea to make so many plans that you can't cut your expenses quickly.
Coverage from insurance
Payment protection insurance is another thing to think about. This can be very helpful, and it was made just for times like these. It works by adding a certain amount to your monthly bill. This is added to your bill automatically and is based on how much you still owe on each bill. For instance, payment protection insurance on a credit card could cost you GBP1 for every GBP100 you owe. Then, if you lose your job through no fault of your own or can't work because of an accident or illness, the insurance should step in and make your payments so you don't fall behind and have to pay extra fees. This can really help you out financially when you need it the most.
