What to do When You Can’t Pay the Bills

Have you ever thought about what would happen if you couldn’t pay your bills? You may already be in that position, or maybe you’ve been there before. I know I have. It’s beyond uncomfortable. In fact, it’s downright scary. The first thing you need to do is take a deep breath. There is help.

Believe it or not, most places are willing to work with you if you contact them to let them know you are having financial difficulties. These companies have bills to pay, too, and they would rather get their money from you over a longer period of time than never get it at all.

If you can’t pay some of your bills, first figure out how much money you have. Then, add up all your bills and see how much you will still owe after you pay what you can. The next step is deciding which ones to pay.

I would start with the electric bill, which is often the largest bill during the summer in Texas. Contact your electric company and let them know you can’t pay your entire electric bill. See if they have any assistance programs available or if they can put you on a payment plan. Don’t just settle for averaging billing, which makes your bill the same amount all year long. That doesn’t help if you can’t pay it in the first place.

If they won’t help, and you live in Dallas County, contact the county’s heat hotline at 214.819.6001 and ask for help. The county also offers a Comprehensive Energy Assistance Program to qualified residents. Contact your other utility companies – water, phone, etc. – to see if they can help you, as well. Your phone company may be able to put you on a cheaper plan.

Loans and credit cards bills are a little different. If you don’t pay them, your credit score will suffer and you could lose your home or car. A bad credit score could keep you from obtaining car insurance, renting an apartment or getting any other loans.

If you really can’t pay the bill, contact the lender and let them know. Tell them you want to be a responsible customer and repay the money, then ask them if there is a way they can help until you get back on your feet. Often, mortgage companies are willing to move one or two payments to the end of your loan term. Auto lenders may do that, as well. If not, they may extend your due date until your next pay check. Some lenders will offer a work out loan, which simply helps you work through your financial difficulties while still paying something toward your loan.

What you absolutely should NOT do is ignore your bills. When bill collectors can’t get in touch with you and you get behind on your payments, they assume you abandoned them. Contact them first, and more often than not, they will do what they can to help you pay them back.