3 Things to Do When You Know You Can’t Pay a Bill

October 20th, 2017 | Author:

One of the worst feelings you can have is when you have a bill coming due and no way to pay it. You have either spent all of the money or you have to spend it on something more important. You don’t want to have to deal with those phone calls from creditors because you don’t know what to tell them. Even the next paycheck is already spent, and you’re just starting a downward trend into late payments and bad credit.

1. Look at Your Options

The first thing you should do is look at other options for how you can pay this bill. Maybe you have something to sell or a friend you can borrow from (or ask for a gift if you know you can’t pay it back). See if there’s some way to come up with the funds even if it will be a few days late.

2. Make a Partial Payment

Sometimes, you have some of the money but not all. Find out if your creditor will accept a partial payment. Let the creditor know your situation and that you will pay the additional amount next month or spread it out over several months. Often, they will work with you as long as you can pay the interest.

3. Ask for a Deferral

Ask your creditor if they have a deferral program or any other option that will let you skip this one payment or even more than one. Explain your situation and let them know when you can get back on track. Even if it’s several months down the road, they may be willing to offer lower payments to keep you from defaulting completely.

The worst thing you can do is nothing when you have a bill you can’t pay. Look for other solutions and talk to your creditors. Most of the time, they are willing to work with you and may have programs you aren’t aware of.

Newest Answers

Get a Better Credit Score in 2017

January 22nd, 2018 | Author:
h

[I]f you have a goal to improve your credit score for the new year, you need to set up steps to help you achieve this goal. For many, they read all kinds of information about how to get a good credit score, and it can be overwhelming. Sometimes, it can sound so easy but not […]

Continue Reading »

Why You Need to Check All Three Credit Reports

January 19th, 2018 | Author:
h

[T]here are three major credit reporting agencies: Experian, Equifax and TransUnion. All of them provide a credit report which lists your personal information and credit accounts. You can get one report for free each year or purchase extra reports through the agency sites. Many people just get one credit report, but you really should get […]

Continue Reading »

What is the Right Amount for a Credit Limit?

January 18th, 2018 | Author:
h

[A]s you get credit cards, you will notice they give you a credit limit. This is the maximum amount you can spend on the card without paying some of it off first. Credit card companies often increase your credit limit as you prove responsible handling the amount you have. You may wonder if more credit […]

Continue Reading »

Buying a Car with Bad Credit

January 12th, 2018 | Author:
h

[I]f you have bad credit, it can be difficult to qualify for a car loan. However, it’s not impossible. Before you go out and apply for money to purchase a vehicle, there are some things you should know. Check Your Credit Before you fill out any applications for car loans, you need to take a […]

Continue Reading »

What Does No Credit Mean?

January 10th, 2018 | Author:
h

[M]any people hear that they have bad credit, which means they haven’t always been responsible with their credit accounts. However, it is another situation entirely when a person is told they have no credit. You may wonder how that’s possible and what it really means for your future. No Credit Doesn’t Mean Never Any Credit […]

Continue Reading »

What You Need to Know about TransUnion

January 8th, 2018 | Author:
h

[T]ransUnion is one of the three credit bureaus which stores information about consumers and their credit history. It provides this information to creditors and to consumers. TransUnion was founded in 1968, and it now has more than 200 offices through the US and the world. How TransUnion is Different TransUnion is similar to the other […]

Continue Reading »

What You Should Know about Equifax

January 5th, 2018 | Author:
h

[E]quifax is one of the three major credit reporting agencies which provides information used on your credit report. It has a credit score which will impact your ability to get approved for new credit. All of these agencies aren’t the same, so here is some information you should know about Equifax. Equifax is headquartered out […]

Continue Reading »