Paying bills issuch a pain for someone who is disorganised. If bills are left unpaid on orbefore its due date, expect for higher bills by at least 10%. The best rule ofthe thumb is never to get committed to bills which you can't realistically payfor.

There are justso many good things out there that can leave you with loads of bills to payfor. There are excellent phone, electric, water, mortgages, loans and otheroffers that can be pretty amazing at first until you realise you just have toomuch to pay.

Financiallyorganised people can relate to the importance of limiting their bills. Youshould not get too much of what you can pay for. There are things that you needto consider before you decide to take on things that will add up to yourregular household bills. For instance, if you are  already paying for phone line, there is noneed to get extra phone services for an additional bill. Some phone companieswould offer promos like ?caller id? for a low fee every month. Although itsounds good, in the end it will just be additional payment.

Know Your Financial Limits

So what amountis just right for you? How will you know what amount you should limit yourselfto in terms of bill payments? There is a simple calculation that you shoulduse. You don't have to be a number expert to determine how much bills you arecapable of managing.

You need to knowtwo basic things. First, you gross income and second your existing debts. Grossincome refers to the amount that you earn before tax is taken out. Existingdebts refer to all household bills that you have to pay for on a regularbasis.  This includes bills like mortgage,loans, car payments and utility bills.

Too Much Or Just Right?

Is your grossincome just right or too much for your existing debts? If it is too much, thenyou still have the chance to add more. But if it is just right or actually lessfor your existing debts, it is time to consider finishing your debts firstbefore adding more to it. You will end up in bankruptcy if you don't stopadding more and more to your debts and your gross income is not enough to payfor your bills.

Some people arejust so disorganised that they don't even know that they are already puttingtheir finances at risk. In this cases, bill payment services are useful. Whenyou can't handle your bills anymore, it pays off to get help from billmanagement services.