7 Monthly Bills You Can Choose to Pay Late Without Fees
Written by
Cindy Lamothe
Edited by
Sean Fisher
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We’ve all had some stretches where budgeting was an issue. Maybe we’ve overspent on groceries, had a medical emergency or had other unexpected expenses crop up.
Whatever the case, if you’re needing some extra time to catch up on bills, you’ll be relieved to know there are some bills you can choose to pay late without incurring hefty financial repercussions.
Several types of monthly bills offer flexibility in payment without immediately incurring late fees. Understanding the specific terms and grace periods can help you manage your finances more effectively.
“I’ve seen firsthand how annoying late fees can be when you’re trying to stay on top of your bills,” said Rhett Stubbendeck, finance expert and CEO and founder of Leverage Planning. “Luckily, some bills are more forgiving than others.” Here are a few that might surprise you.
Here are some expert tips for managing your bills smarter and avoiding costly fees.
Federal Student Loans
According to Stubbendeck, they typically have a 15-day grace period and they don’t report missed payments to credit bureaus until you’re 90 days late.
“This flexibility can be a lifesaver if you’re between jobs or just need a little extra time to get your finances together.” Stubbendeck said. “I’ve had clients who used this to their advantage and it made a huge difference for them.”
Medical Bills
Medical bills are another area where you might catch a break. Many hospitals and healthcare providers offer payment plans with no late fees.
“One of my clients had a huge hospital bill and managed to set up a payment plan by simply calling the billing department,” Stubbendeck explained. “They’re often willing to work with you if you just reach out and explain your situation.”
Utility Bills
Then there are utility bills. Stubbendeck noted that some utility companies have grace periods of up to 10 days before they hit you with late fees.
“I’ve had clients call up their electricity providers to explain their situations and they were able to work out a plan to avoid any extra charges.” Stubbendeck said. “At Leverage, we’re all about helping you manage your finances better. Knowing which bills are more flexible can really help you stay on track.”
Dennis Shirshikov, finance expert and head of growth at GoSummer agreed that many utility companies, including those for water, electricity, and gas, offer a grace period before imposing late fees.
“Typically, these companies allow for a payment window of up to 15 days past the due date,” he explained. “For example, if your water bill is due on the 1st of the month, you might have until the 15th to pay without a penalty.”
He said it’s crucial, however, to communicate with your utility provider if you anticipate difficulty making a payment on time. This proactive approach can sometimes lead to an extended grace period or a payment plan to avoid service disruption.
Credit Cards
According to Shirshikov, credit card companies generally offer a grace period, typically 21 to 25 days after the billing cycle ends. While this grace period doesn’t technically allow for late payments without fees, it provides some flexibility in managing cash flow.
“During this period, you can pay your balance in full without incurring interest.” Shirshikov said. “For instance, if you receive your credit card bill on the 1st and your payment is due on the 25th, paying within this window can help avoid interest charges.”
Some credit card issuers may also waive the late fee for the first missed payment as a courtesy, especially if you have a good payment history.
Rent
“Landlords may sometimes offer a grace period of a few days past the due date, typically specified in the lease agreement,” Shirshikov said.
He added that this period usually ranges from three to five days.
“It’s essential to understand your lease terms and communicate with your landlord if you anticipate a late payment.”
In some cases, landlords are willing to work with tenants to avoid late fees or other penalties.
Insurance Premiums
Experts noted that insurance companies, whether for health, auto, or home insurance, often have a grace period for premium payments. During this time, you can make your payment without losing coverage or incurring late fees.
“This period can range from 10 to 30 days depending on the insurer and the type of policy,” Shirshikov said. “It’s important to check your policy details and communicate with your insurer to understand your options.”
Subscription Services
Many subscription services, like streaming services or gym memberships, may not impose immediate late fees. Instead, they might suspend your service until the payment is made.
“This suspension policy provides some leeway in managing payments without the immediate financial penalty, although continued non-payment can result in account cancellation,” Shirshikov said.
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