If you’re having trouble paying utility bills, you probably aren’t alone.
According to the latest Consumer Price Index data, the index for electricity rose 2.4% from September 2023 to September 2024, which is right around what economists like to see (the Federal Reserve aims for 2% annual inflation). Natural gas went up by exactly 2%, but water, sewer and trash collection services have climbed more than economists like to see: 4.8% .
[READ: The Best Way to Keep Track of Payments and Bills]
The monthly average price of natural gas is $23.40 a month, per thousand square cubic feet, as of August 2024, according to the U.S. Energy Information Administration. And the average household of four uses around 10,000 gallons of water per month, according to the United States Environmental Protection Agency.
All of these facts can translate into struggling to pay your utility bills. If you are, here’s what you need to know.
What Happens if You Don’t Pay Your Utility Bill?
If you don’t pay your utility bill, eventually you’ll lose service. You’ll likely be given plenty of warning via notices by mail, email and maybe telephone, and it’s important to let your utility company know that you’re having trouble.
“If you’re struggling to pay your utility bills on time, you should call your utility companies first,” says Leslie Tayne, a financial attorney at Tayne Law Group who helps clients manage debt.
Your utility company may have access to community or government funding.
“They also may be able to set up budget billing where your utility payments get spread out equally throughout the year. That way, you won’t get unpleasantly surprised by a large bill during the months your usage increases,” Tayne says.
[States Where Americans Are Struggling to Pay the Bills]
Don’t ignore warnings to pay your bill from the utility company. If you lose power or water or some other service, you may have to pay a reconnection fee, and possibly the entire amount that you owe.
Eligibility for Financial Assistance
Federal and state programs, and some nonprofit organizations, often require a household to be level with or under the federal poverty guidelines — currently $31,200 or less a year for a family of four — to qualify for assistance.
This doesn’t mean that if your household is earning $50,000 a year, for example, that you can’t get assistance if you need help paying bills, but it will be more difficult.
[READ: 10 Ways to Save Energy and Lower Utility Bills]
Organizations That Can Help With Utility Bills
There are groups out there that can help homeowners with utility bills, though they typically help only low-income households. Here are some organizations to consider if you need help:
Low Income Energy Assistance Program. The main source of help with paying utility bills is the Low Income Home Energy Assistance Program, or LIHEAP. You can access LIHEAPs nationwide, though their names may be slightly different.
“Families have to apply; they qualify based on their income, and it’s based on a percentage of the federal poverty level, which is 150% of the federal poverty level to qualify,” Tayne says. “Family size, income and fuel type determine the amount of assistance you may receive.”
LIHEAPs often will spend money to make homes more energy-efficient so that going forward people don’t have to spend so much on energy bills. You may be able to get assistance from a LIHEAP to pay heating or cooling bills, and get help dealing with emergencies, such as getting payment to your utilities before they are shut off.
“The application for LIHEAP can be done in person at your local community action agency or online,” Tayne says, adding that if you qualify, you may be able to get one-time assistance during the heating season (October through May) and cooling season (June through September).
Emergency Rental Assistance Program. The Emergency Rental Assistance Program is designed to help renters who have fallen behind on rent or utility bills. The Consumer Financial Protection Bureau can help you find rental assistance programs in your area. There are more than 500 throughout the country.
Community Action Agency. Community action agencies are nonprofit organizations throughout the country that help households and individuals. To qualify, you have to have a low income or be disabled or elderly.
Churches. Nicholl McGuire, a freelance writer based near Atlanta and former apartment community manager, says she often encountered residents who were having difficulty paying utilities, and she sometimes recommended trying a local church.
“Most churches have benevolent funds they distribute to people who are not members of the clergy but do have a specific need,” McGuire says. “What the church will ask for is a copy of the utility bill, a signed lease or homeowner documents and I.D.”
Charities. Tayne suggests contacting the Salvation Army or United Way. Both of these respected nonprofits have robust programs designed to help people who have fallen behind on their utility bills.
McGuire says some of the people she has worked with have had success with the National Urban League, another esteemed nonprofit that is in 300 communities in 37 states and Washington D.C.
Call 211. United Way often runs 211 organizations around the country, but sometimes these chapters are run by other nonprofits or local government agencies. You can go to the website, 211.org, or call 211 on your phone.
You can connect with someone who can put you in touch with an organization that can help you pay your utility bills or get you access to low-interest loans.
Visit Findhelp.org. Tayne says Findhelp.org can also be a resource for those struggling with utility bills; it can connect you with local charities offering assistance with utilities and other expenses. You can type “utilities” into Findhelp.org’s search box to find local organizations.
The Bottom Line on Finding Help With Paying Your Utility Bills
Remember to alert your utility company if you’re having trouble making payments. It may offer assistance, such as a budget billing program, or suggestions on where to go for help .
“Utilities need to be proactive about how they can help as well as [explain] why rates are going up,” says Mark Spalinger, director of utilities intelligence at J.D. Power, a consumer intelligence company. “Being left in the dark benefits no one.”
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Where to Get Help Paying Your Utility Bills originally appeared on usnews.com
Update 11/19/24: This story was published at an earlier date and has been updated with new information.
