In the U.S., about 31% of families have a hard time affording their energy utility bills. Three out of every 10 households deal with this problem regularly. If you have trouble keeping up with your monthly expenses, just know that you’re not alone. The real question is, how do you solve this bill problem? A potential solution is to combine multiple utility bills into one. Read on to learn how to consolidate bills and how it can help give you financial peace of mind.
What is Utility Bill Consolidation?
Your utility bills include essentials like gas, electricity, water, sewer, and trash pickup as well as non-essentials like cable TV. You’re responsible for many of these expenses, whether you live in a home or an apartment. Bill consolidation is a process that takes many or all of your bills and puts them into one package. It combines all of your expenses, so you only have one monthly bill instead of 5 or 6 separate bills.
Know Your Options for Consolidation
When you need to consolidate your utility bills, you have several options. You can use a consolidation service, take out a loan, or use a low-interest credit card. If you’re already in debt on your utilities, it might be wise to use a consolidation service program. With these programs, a representative will negotiate the existing interest rates on your debt. This can lower your monthly cost and help you pay down your debt faster, but it comes with a fee. If you’re a homeowner, you can also consolidate your debt into a home equity loan. It works like a regular loan, only your home is the collateral. A third way to consolidate your bills is to sign up for a credit card with a 0% or low-interest introductory period. This is truly a short term solution, since the introductory period will eventually end and you’ll face a high interest rate. If you’re not careful, you could end up with more debt.
Research Your Consolidation Option
Once you’ve chosen a solution to your utility bill debt, it’s time to do your homework. In other words, read the fine print. If you choose a consolidation program, compare agencies to see which one is the right fit. Ask questions like, which debt consolidators are trustworthy and is Debthunch legit? What kind of payment plans do they offer? How much is each company’s fee? If you go with a low interest credit card, know when the introductory period ends. Your priority should be to pay off the full balance before the intro period ends. The bottom line is, make sure you know what you’re getting into. Make sure you understand the details for the payment plans, otherwise your utility bills will keep piling up.
Consolidate Bills and Solve Your Utility Problems Today
Worrying about monthly bills can bring a lot of stress into your life. If money is tight, you can consolidate bills to simplify your expenses. You’ll only have one payment to think about and you might get a break on your interest rates. To learn other ways you can improve your life, check out our articles.
Photo by Paige Cody on Unsplash
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