Can’t afford your utility bills? Don’t panic, here are your options

You may feel stressed if another month passes and another utility bill you’ve been struggling to pay arrives at your desk. It’s easy to fall behind on bills, especially when it comes to utilities, but there are programs available to help low-income people make their payments. Options are available at the state and local level, and it’s also a good idea to create a personal budget that works for you.

Create a business plan if you can’t pay your utilities

Instead of falling behind and hoping you can pay the bills next month, take some important steps.

Contact your utility company

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

The utility company may accept whatever you can pay for now and roll over your balance to the next month, if your account is usually in good standing and you’re dealing with a one-time financial emergency.

If you’ve been having trouble making payments for a while and your balance grows, discuss a deferred payment plan. This breaks your balance into monthly payments over a set period, allowing you to pay off the entire balance gradually over time.

Check state and local assistance programs

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

• Federal assistance programs: Specifically, the Low-Income Home Energy Assistance Program (LIHEAP), which is already state-run, provides financial assistance to pay for utilities if you meet the program’s income guidelines.
• State or city assistance programs: Check your city or state’s social services departments for utility bill assistance programs. Again, you’ll likely have to meet income guidelines to qualify, but low-income people can get help paying their utilities.
• Charities and non-profit organizations: Religious organizations or nonprofits may 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 can 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 know exactly where your money is going each month.
2. Make at least the minimum payment on all your bills: Don’t fall behind on any of your accounts. Even if you can’t pay it in full, make sure to pay at least the minimum so you don’t hurt your credit score.
3. – Reducing unnecessary spending: Look back at your spending habits to see if there are expenses that you no longer need or want. This frees up more money for essential bills, like your utilities.
4. Shop for coverage: Although you may not be able to compare services, you may be able to get a better deal for a different service you pay for, such as your mobile phone or internet. Again, you can use the money saved to pay your utilities.
5. Start an emergency savings account: It may seem difficult to save when you’re having trouble paying your bills, but once you get to the point of being able to make your monthly payments, start setting aside money for emergencies.