5 Budget Moves To Avoid Falling Behind on Utility Payments
Written by
Emily Fowler
Edited by
Levi Leidy
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As energy prices climb, many households are making tough choices just to keep the lights on. Having to cut back on essentials to be able to pay utility bills is stressful, but missed payments can lead to the power being cut off.
According to a survey by Payless Power, 24% of U.S. households fell behind on electricity payments over the last year. That number goes up to 39% in low-income households, with nearly one in three having received at least one shutoff notice and 11% actually having their power cut off.
When you’re worrying about being able to pay next month’s bills, every dollar can help. Here are some practical ways to make keeping up with utility bills a little easier.
Track and Analyze Energy Use
Getting a handle on where and when electricity is being used is a great first step, and according to CNET, an energy monitor can save around 8% on bills every month. By letting householders know which appliances are using the most, simple changes can be made to lower energy usage and cut monthly bills.
Adopt Energy-Efficient Habits
Making changes to daily habits can help to reduce energy consumption, lowering bills and making it less likely to fall behind. The savings made from things like lowering thermostat settings, sealing windows and doors, switching to LED lighting and running high-energy appliances during off-peak hours can all add up over time.
Set Up a Payment Plan
Most utility companies offer payment plans or budget billing, where customers pay a fixed monthly amount based on their average household usage. It’s always worth checking with a specific provider, and if there’s already an overdue balance, taking control of the issue and negotiating early can prevent shutoff notices.
Set Up Automatic Payments
Sometimes falling behind isn’t because of financial issues, it’s simply forgetting to pay a bill on time, so automatic payments help by making sure bills are paid. If possible, scheduling payments to coincide with paychecks can be easier for monthly cash flow. Most utility companies allow full or partial automatic payments, and some offer alerts when bills are due.
Prioritize High-Priority Bills
Electricity, heating and water take priority over nonessential spending, though it can be easy to spend on “fun” things first. When money is tight, keeping the home powered and safe comes before extras, which might mean delaying other purchases to make sure bill payments don’t fall behind.
Taking Control of Utility Payments
Rising energy costs affect more than finances. The Payless Power survey showed 29% of low-income households felt unsafe at home due to extreme temperatures and 56% went without heat or air conditioning for several days in the past year. These small, practical steps can help ease the stress of monthly bills and keep homes safe and secure.
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