Can’t Afford Your Utility Bills? Don’t Panic—Here Are Your Options

You might be feeling stressed out if another month has rolled around and another utility bill you’re struggling to pay has landed on your desk. It’s easy to fall behind on bills, especially with utilities, but there are programs available to help people with low incomes make their payments. Options are available at the state and local levels, and it’s also a good idea to come up with a personal budget that works for you.

Create an Action Plan If You Can’t Pay Your Utilities

Instead of falling behind and hoping you can pay the bills next month, follow a few important steps.

Reach Out to Your Utility Company

Call your utility’s customer service department and explain that you’re having trouble making the payment. Not only will the company appreciate that you’re trying to pay your bill, but they should be willing to work with you.

The utility company might accept whatever you can pay at the moment and roll your balance to the following month, if your account has typically been in good standing and you’re dealing with a one-time financial emergency.

If you’ve been struggling to keep up with payments for a while and your balance has grown, discuss a deferred repayment plan. This divides your balance into monthly payments over a set term, allowing you to repay the entire balance gradually over time.

Check State and Local Assistance Programs

Many organizations and agencies work hard to provide help to people who need it. These include:

• Federal assistance programs: Specifically, the Low Income Home Energy Assistance Program (LIHEAP), which is actually run by the state, provides financial assistance for paying utilities if you meet the program’s income guidelines.
• State or city assistance programs: Check social services departments in your city or state for utility bill assistance programs. Again, you’ll likely have to meet income guidelines to qualify, but people with low incomes can get help paying their utilities.
• Charities and nonprofits: Religious organizations or nonprofits might offer grants or assistance if you qualify. Even if you don’t, they may be able to point you in the direction of an organization that would be able to help you.

Stay on Top of Your Bills

There are steps you can take that can help you move beyond living paycheck to paycheck.

1. Track your income and spending: Use an online program or mobile app to track all of your income and expenses, so you can see exactly where your money is going every month.
2. Make at least the minimum payment for all your bills: Don’t fall behind on any of your accounts. Even if you can’t pay them in full, make a point of paying at least the minimum so you don’t damage your credit score.
3. Trim unnecessary spending: Refer back to your spending habits to see if there are expenses you no longer need or want. This frees up more money for essential bills, like your utilities.
4. Shop around for coverage: While you may not be able to comparison shop for utilities, you might be able to get a better deal for a different service you pay for, like your cellphone or internet. Again, you could use the money saved to pay your utilities.
5. Start an emergency savings account: It can seem hard to save when you’re struggling to pay your bills, but once you get to the point of being able to make your monthly payments, start setting aside funds for emergencies.