Tips For Juggling Unpaid Bills to Keep the Lights On

January 21, 2025

When there’s more month than money, as the saying goes, you may find yourself wondering how to pay all your bills. While there’s no real way around paying what you owe without serious consequences to your future financial wellness, here are some short-term tips to weather a financial challenge in a way that can help you keep the lights on.

Evaluate the potential damage of paying late

While it may seem counter-intuitive, when you’re juggling bills, you first want to have an idea of the consequences of missing payments. You should always reach out to your providers before skipping a payment to see if there are options to keep your account in good standing due to a missed payment. But when there’s no other option, sometimes you just have to skip a month. Here’s a quick run-down of common bills and their likely consequences:

Rent or mortgage: Leaving your mortgage or rent unpaid for a month will likely cost you a late fee, but it takes a while to be foreclosed on or evicted. As a courtesy, let your lender or landlord know what’s going on if you have to pay late – they may work with you.
Utilities: You usually have to miss several months of utilities before they can be turned off, although being more than 31 days late usually means it will be reported on your credit report. Call your utility company to explore programs they may have for customers going through a hardship before you skip a payment.
Internet and cable: You probably already know you should cancel the cable if you can, but these days internet service is pretty vital to most households. You usually have to skip a couple months of payments before your internet is turned off. Check with your local government or school district if you have kids in the house – there may be a program to get free internet if you can prove a need (your internet service provider may also be able to point you to resources to help).
Cell phone: You will probably lose service only after a few days of missing a cell phone bill payment. Look into a cheaper plan or switch to pay-as-you-go if possible.
Credit cards: Missing a payment doesn’t mean immediate default, but you’ll have a late fee and a skyrocketing interest rate as a consequence. Call your card company and ask if you can skip a month before your bill is due – most will give you a “payment holiday” at least once a year, which will save you the late fee and keep your interest rate down.
Car payment: Same goes for a missed car payment – you won’t have your car repossessed after just one missed payment but could face a late fee and higher payments in the future. Call your lender to see if they have any options to lower your payment for a few months or to give you leeway on your due date.
Student loans: Skipping student loan payments can spiral to default pretty quickly, and this type of debt doesn’t usually go away in bankruptcy, so contact your lender before your payment is late to request forbearance. Most lenders, even private loan servicers, will usually give you up to 3 months off but you have to apply first.
Car insurance: Paying even a day late can make your policy lapse – this can lead quickly to losing your license and even jail time if you get caught. Call your insurance company to see if you can lower your bill first.
Health insurance: You can also quickly lose coverage if you pay this insurance late, so this should be a top priority if it’s not already being paid through work.
Medical bills: You usually have up to 90 days to work something out with your provider beyond a due date, but if you have ongoing medical needs, unpaid bills could stand in the way of your provider being willing to see you again. Request a payment plan for large bills and for smaller bills, send at least a few dollars each month to keep the account out of collections if possible.

Note that skipping a bill payment almost always leads to a hit to your credit, which can trail you for years to come. We know that sometimes this can’t be avoided, but it’s our job to make sure you understand the full consequences – just be aware that it could stand in the way of purchasing a home or car in the future.

Prioritize accordingly

Using the above information, rank your bills by which to pay first:

Most important – must pay

Cell phone (assuming having a phone is critical to your life)
Car insurance
Health insurance

Make every effort to pay if possible

Car loan
Student loan
Credit card

Can wait if needed, although only for a couple months max

Rent or mortgage
Utilities
Cable and internet
Medical bills

Shift when needed

If you’re facing several months of being unable to pay all your bills, then you will need to re-shuffle as things progress. For example, if you’re being threatened with eviction, then rent jumps to the top of the list; if the electricity is turned off, then obviously pay that over a student loan or credit card bill. And if you need more medical services, then you may need to pay off a bill there first.

When your challenge doesn’t have an end in sight

It’s important to note that most of these tips assume that the financial challenges you’re facing are temporary – they are intended to help you get through a tough time with minimal long-term impact on your credit and finances. The assumption is that you will find a way to eventually get back to paying all your bills unless you’ve found a way to get out of them, so we are sharing tips to survive until you reach the other side.

If you’re facing a more permanent challenge such as a disability or loss of income that can’t be overcome, you’ll likely also need to make bigger picture changes to your lifestyle to survive financially. This could include moving, selling big things like a car or expensive furniture or finding a roommate to help with the bills.

Take time to breathe

Even though it might feel as if bills and late notices are raining down upon you nonstop, don’t just ignore them. There is often a way to approach them so you can find a workable solution.

It’s worth it to consider the alternatives, even if it does take a bit more work and endurance – your future self will be glad you did.