If You Can’t Pay Your Bills, What Should You Do?

No one likes to worry about money, but if you can’t pay your bills, it’s something you need to take seriously. What should you do if you find yourself in this situation?

Steps to take if you can’t pay your bills

Many people experience financial hardship and issues when it comes to paying their bills. Don’t hesitate to ask for help, as there are various options available to support you during financial hardship. If you can’t pay your bills in Australia, take the following steps:

1. Contact your service providers immediately: Reach out to your bank, electricity, gas, water, or phone companies before the bill is due. Explain your situation and ask about available options.
2. Explore payment options: Service providers can offer various assistance, such as payment extensions, installment plans or hardship programs.
3. Seek financial counselling: Contact the National Debt Helpline at 1800 007 007 for free, independent financial counselling. They can help you manage your debts and negotiate with creditors.
4. Check for government assistance: Enquire about eligibility for government rebates, vouchers, or concessions to help cover utility costs.
5. Review your budget: Assess your financial situation, prioritize debts, and look for ways to reduce expenses.
6. Consider energy-saving measures: Many states offer schemes to help cover the cost of energy-efficient home and appliance upgrades.
7. Explore Centrepay: This free service allows Centrelink recipients to have regular deductions made from their payments to cover bills.
8. Avoid disconnection: By proactively communicating with your service providers, you can prevent service suspension or disconnection.

Remember, under the National Energy Retail Law, energy retailers are required to assist customers experiencing payment difficulties.

What about the credit bureaus?

If you can’t pay your bills, contact your credit bureaus to see whether they have any programs in place to assist individuals who are having financial difficulties. It’s important to contact both the credit report bureaus and your creditors before you default. That way you may prevent a default from being recorded on your credit report.

Ensure that your credit file is accurate and up-to-date, and to reach out to your credit bureaus if you’re experiencing financial difficulties. They can help you create a plan to get your finances back on track and work with your creditors to avoid negative marks on your credit file. Keep in mind that it’s always best to try and resolve these issues before they reach this level. By following these steps, you can maintain a healthy credit score and could avoid any negative consequences down the road.

If you have an inaccurate default on your credit file, please do not hesitate to contact Clear Credit Solutions. We are the credit repair experts in removing credit defaults and court judgements from credit files, which will help improve your credit score and enable you to obtain the credit you need.