From utility bills to debts and increasing unemployment, it is tough to dig your options. Many people evaluate their income and expenses regularly. However, yet many of them are obliged to ignore their bills, knowing that they cannot afford to pay their bills. In such a scenario, when do you need help?
You do not need help if you are unable to buy another expensive car or pick that expensive makeup product in the cosmetic store. You need help when you are unable to pay for your needs. These include utility bills, home loan, and such. Here is what you should do now.
Steps to Cope with the Unpaid Energy Bills
The supplier of your electricity, gas and other energy will contact you if you didn’t pay your bills on time. Sometimes, the suppliers allow up to three months of time to pay the bills. If you have adjusted your financial conditions, and are able to pay your bills in the future then contact your supplier. The supplier will create a payment plan to adjust your recurring bills in the new bills. You can pay these bills fully or in installments.
For creating a plan, you need to provide details about the use of energy in near future and your remaining payments. Make sure to mention it clearly to the supplier if you cannot afford to fulfill the adjusted payment plan.
If you are unsure about your financial circumstances then you should contact a credit counselor. The counseling agencies will evaluate your case and offer you a plan. This plan will include your renovated budget. If the case is more complicated then the agency will redirect you to a specialized counseling agency. Make sure to avoid taking out another debt to pay off your older debts.
Have You Agreed to the Plan but Lack Money?
In other case, you may also agree to the plan if you can avail your benefits for paying off the bills. You can apply for Pension Credit, Fuel Allowance, Jobseeker’s Allowance (if you are unemployed), and federal income support programs to pay the installments of your bills.
What to Do If Help is not Available?
- Calculate your expenses. If you can afford to pay the bills by cutting your mortgage then consider moving a home. It will take at least five months to complete the process of foreclosure. Meanwhile, you don’t need to pay the mortgage for a property on foreclosure. You can move to a smaller house to save money for paying your bills.
- The US Supplemental National Assistance Program is designed for the people who cannot afford to buy food. You may qualify for this program and pay your bills with this money.
- Make sure to pay for the essentials first. Your credit counselor will also suggest this. The essentials include house mortgage, food suppliers, childcare, medical, energy supply, and transportation.
When you fail to pay a bill on time, your credit score drops by around 100 points. Make sure to make your payments on time or get help as soon as possible.