Your utility bills are normal, essential expenses that can turn into persistent debt if you can’t manage to pay them off each month. If you let your monthly bills accumulate, they will eventually become a problem you won’t be allowed to ignore.
If you fall behind on your utility bills, you could end up having to pay a fine. Your service could be disconnected, and your credit score could be impacted negatively. Old unpaid bills can follow you for a long time, so it’s best if you learn how to pay off old utility bills.
Here are five methods on how to pay off old utility bills:
1. Get a payday loan so you can pay off your bills in full
One of the best ways to pay off old utility bills is to get a payday loan. You want to get rid of your old utility bills once and for all, as quickly as possible, so you can be debt-free. But how can you do this without putting a dent in your budget?
By taking out a payday loan, you can pay off your old utility bills in full. A payday loan can be a great alternative to waiting for your next paycheck so you can get rid of your utility bills.
Before you choose this solution, however, make sure you will be able to pay off your payday loan without delay when you do get your next paycheck. The last thing you want to do is get into debt while trying to pay off your debt.
2. Use the debt snowball method if you have many old bills to pay
If you have many old utility bills to pay, and if you are in no emergency, you could simply pay them off one after the other. When dealing with different debts, some people recommend starting by paying off the largest one, or the one with the highest interest rate.
While this method can help you save money on the long run, the debt snowball method can be more encouraging.
To use the debt snowball method, start by focusing on the smallest bill you have to pay. Make the minimum monthly payment required on all your bills, except the smallest one, on which you will put more money. When you are done paying this small bill, use the extra money you will now have to focus on paying off your next bill.
Each time you get rid of a utility bill debt, you will feel encouraged and motivated to keep going until they have all been paid off.
3. Negotiate a reduced payoff amount with your utility company
If you have been unable to pay your utility bill for some time, you should try negotiating a reduced payoff amount with your utility company. If your debt is old, and you can show them you are serious about paying it off, they might be happy to offer you a reduced rate.
Your utility company wants you to pay your bills, not to let them accumulate for years. If you get in touch with a representative and explain them why you have been unable to pay all your monthly bills, they might propose you a payment plan that will help you pay off your bills in a manner that makes sense with your situation.
4. Verify if you qualify for some payment assistance
If you have lost your job, it could be very difficult to pay off your utility bills in full, or to take out a payday loan to get out of this debt. If you need help, don’t hesitate to ask for it.
You might be able to qualify to receive some utility bill payment assistance from your government, or from a local charity. If you are not aware of any payment assistance program in your area, make some research. You could be surprised to find an easy solution to your problem, and some much needed help to help you get back on track.
5. Dispute your utility bills if you feel like there was a mistake
There are times when the best way to deal with an old utility bill is to not pay it. Did you receive a huge electricity bill even though you live alone? Did your telecommunications company charge you for many costly services you did not even use?
If you know there was a mistake on one, or many of your old utility bills, you should dispute them. One easy way to do this is to gather your previous bills, and to get in touch with a customer representative to explain your situation, and to request for your bills to be reduced.
You might have to argue, or even to speak with the company’s manager, but if you manage to make them understand your point, you should be able to get your bills adjusted so they will be easier for you to pay.