7 Mistakes to Avoid When You Can’t Pay Your Bills


There’s no doubt about it, it’s extremely stressful when you can’t pay your bills.

You may be dealing with sleepless nights, debt collectors, and worries about how to feed your family.

But there are steps you can take to manage and improve your situation. Avoiding these 7 mistakes when you can’t pay your bills will help!

Mistake #1: Choosing a Permanent Solution

I hate to open with this, but please do not consider killing yourself over debt or bills.

Your life is worth way more than anything that may happen with your money. Remember that given enough time, things can turn around. Please do not choose a permanent solution to a temporary problem.

Many, many people are or have been in debt and unable to pay for things, including me. There’s no shame in being in that situation.

And yes, it’s stressful. But it can get better, even if you don’t see how right now.

Mistake #2: Not Getting the Mail

It’s normal to dread checking the mail when it’s just going to be a bunch of bills you can’t pay.

But it’s better to get those things over with than to dread it.

Bite the bullet and check your mail at least weekly, if not more often. Then open the bills instead of letting them pile up.

Look to see if any of them have numbers to call if you need help with the bill. (And then call.) Especially in the case of utilities, there are often programs that can help with paying part or all of them.

But they can’t help if they don’t know you need it. Apply for every assistance program that could work.

One last thing regarding the mail: if you’ve moved in the last year or two, make sure you set up address forwarding via the post office. That way important mail is less likely to get lost. That could save you money in the long run.

Mistake #3: Buying Into Lies About Debt Repayment

If someone trying to collect debt is dishonest, they may tell you that you can go to jail for not paying it. This is not true in the United States, so there’s no need to believe that.

However, you can go to jail in some states for failing to appear in court.

And you can go to jail for not following a court order, especially if that’s on purpose.

(You can read more about the criminalization of private debt here.)

So don’t panic if someone threatens you with jail, but also — don’t fall for the next mistake.

Mistake #4: Missing Court

If you owe money and haven’t paid in a long enough time, the person or company you owe could take you to court. If that happens, you’ll get a summons. It may come in the mail (another reason not to avoid the mail!) or be given to you in person.

If you get a summons for court regarding anything, go to court when you are supposed to.

If you want a lawyer, there may be programs that can help you get one for free or on a sliding scale. Contact the court (or sometimes the number on the paperwork) for info on that.

The bottom line? Don’t miss court.

Because if you don’t go, depending on where you live, the judge could issue an arrest warrant.

And at the very least, the other side will win because you weren’t there. They could be given the right to take money from your wages, etc. So show up and do your best to explain your case. (Or get help from an attorney in doing so.)

If you are ordered by a court to pay something, pay it as ordered. If you’re having trouble doing that, find a way until or unless you can get the order changed to something you can pay.

Mistake #5: Paying the Squeaky Wheel First

Suppose you’ve got a bunch of bills you can’t pay, but a couple of people are calling and really hounding you about it.

It can be tempting to pay those just to get them off your back. But they may not be the most important bills to pay.

For example, if the choice is between paying a debt collector that calls all the time, and paying your rent or mortgage, pay the rent or mortgage.

(Here’s how to stop debt collectors from harassing you.)

In general, if you don’t have enough money to pay everything, pay things in order of how important they are. So a good order would be:

  1. Basic food (get help from food banks and apply for benefits too)
  2. Somewhere to live
  3. A way to keep warm/cool
  4. Minimum payments on money you owe to the government (like taxes) or via court order
  5. Anything you owe money on (and need!) that can be taken away if unpaid
  6. Unsecured debts like credit cards
  7. Medical debt

Don’t just automatically pay the bill that squeaks the loudest first.

Mistake #6: Not Being Clear about Your Situation

Of course, it’s painful to admit it when you can’t pay your bills. And it can be tempting to agree to a payment plan or tell someone the check is in the mail just to get them off your back.

But people are much more likely to work with you if you tell the truth about your situation.

You’re also more likely to make progress if you only agree to what you can truly afford, even if that’s not a lot.

So do be clear about your situation when it comes to things you agree to do. And do what you say you will if at all possible.

Don’t be afraid to look at options like bankruptcy either. Of course you want to pay, but sometimes you really can’t.

Mistake #7: Not Tracking Your Spending or Budgeting

While you may really not make enough to pay your bills, sometimes the lack of funds is caused by spending on other things. But it’s hard to tell if that’s happening if you don’t track your spending and make a plan. (Aka a budget.)

Tracking your spending doesn’t have to be a big deal. You can just use a piece of paper or a spreadsheet. Here’s how to track your spending so it really makes a difference.

The same goes for budgeting. You can use this free budget printable to help with that.

In Summary

It’s stressful when you can’t pay your bills, but knowing these mistakes to avoid can help.

Do apply for any programs that could help with your bills. (Along with programs that help you pay for needs like housing and food.)

There’s no shame in getting help with things! A good place to start is by googling the city, county, and state where you live + help with ______.

7 mistakes to avoid when you can't pay your bills



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