Switching from weekly to bi-weekly pay?

Question

Starting September 1 I am switching from weekly to bi-weekly paychecks. I won't get paid next month until the 19th.

Then my next paycheck would be October 3, right?

Questions:

Should I pay my rent with the check on the 19th? Because my rent is due on the 1st and it is late by the 3rd.

Also, how can I make roughly $600 stretch for all my monthly bills and food? The only way I can fathom it is to eat ramen for a month. I have electric, Internet, credit cards I am trying to pay off. I don't have much in savings because I am trying to get out of debt. I'd really like to make this transition without a payday advance!

Answer 1

Here are some ideas:

1) If your paycheck is direct deposit, give them the check on the 2nd.  It won't clear before your paycheck shows up in your bank account on the 3rd.

2) Drop off your check after 5:00 p.m. on the 2nd.  They won't have a chance to cash it before the 3rd.

3) Even if you your paycheck is not direct-deposit and you have to give them the check before 5:00 p.m. on the 2nd, just go ahead and do that and make sure you deposit your check on the 3rd before the banks close.  If you deposit it on the 3rd, even though it won't clear before your rent check, your bank will give the benefit of the doubt and not consider you overdrawn (usually at least up to $500).

4) Tell the apartment managers about your change in pay schedule, and ask to be allowed to pay JUST THIS ONE TIME on the 3rd.  It's not an unreasonable request.

5) Apply for "overdraft loan" protection from your bank that some banks offer.  It is like a credit card that is automatically used when your checking account is overdrawn instead of being charged an overdraft fee or having your check bounce, and you can pay it back whenever you want.  It won't cost you much if you wind up paying it back after a day or two.

Answer 2

    Its tough having paydays switch on you.  I suggest you talk with your boss first since they are making this transition and its causing you the inconvenience.  Tell him (or her) that this one time you will need a paycheck advance so that you can transition to the biweekly payment style.  You might be surprised how the accounting dept might accommodate you this one time.  

     The second option is to talk to your landlord and discuss the situation and offer to pay more than half on the 19th.  This will show good faith.  

     The more extreme is to look up "Dave Ramsey" and "Clark Howard" these are financial gurus that can help you cut your costs to the bone.  Its awful being in debt but if you can suffer for a little while you will be happier in the end.

    One last note, don't get a "Payday advance" from one of those "check cashing" places.  They are a total rip off - they charge outrageous amounts of interest and only put you further in the hole.  Using a low interest credit card for food is the best "last resort" option.