Behind on Bills

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Behind on bills? Start with one step.

Consumer Financial Protection Bureau

Your Money, Your Goals


Who is the CFPB? The Consumer Financial Protection Bureau works on your behalf. We want you to have the information you need to make good financial decisions for yourself and for your family.

We’re here for you. We are a government agency that was created by Congress in 2010 in response to the financial crisis. We’re taking action. We work to make sure banks, lenders, and others operate fairly. We’re committed to you. We are committed to helping people enjoy safer, better financial lives.

Consumer Financial Protection Bureau


Behind on bills? When bills are piling up, it’s important to remember that you’re still in control. The small steps you choose to take can lead to big changes. We created this set of tools to fit your needs, whether that means short-term financial help, longer-term financial health, or something in between. The tools are designed to help you handle money emergencies, cut down on stress from mounting bills, and build your finances to where you want them to be. You can fix this; we can help. Start with one step. For more information, you can refer to the full “Your Money, Your Goals” toolkit: cfpb.gov/your-money-your-goals

YOUR MONEY, YOUR GOALS


The Consumer Financial Protection Bureau has prepared this material as a resource for the public. This material is provided for educational and information purposes only. It is not a replacement for the guidance or advice of an accountant, certified financial advisor, or otherwise qualified professional. The CFPB is not responsible for the advice or actions of the individuals or entities from which you received the CFPB educational materials. The CFPB’s educational efforts are limited to the materials that CFPB has prepared. This tool may ask you to provide sensitive information. The CFPB does not collect this information and is not responsible for how your information may be used if you provide it to others. The CFPB recommends that you do not include names, account numbers, or other sensitive information and that users follow their organization’s policies regarding personal information.


Where does all my money come from?

Where does my money go?

INCOME TRACKER

SPENDING TRACKER

What is one thing I want to change? GOAL SETTING

8

Tools if you’re behind on bills.

What are all my bills and when are they due? BILL C A L E N DA R

How can I get extra money out of my situation? S H O R T-T E R M S T R AT E G I E S

How do I make tough choices in tight months?

How do I respond to a debt collector?

Who else can I turn to for help?

PRIORITIZING BILLS

DEALING WITH D E B T C O L L E C TO R S

RESOURCE CARDS

YOUR MONEY, YOUR GOALS



INCOME TRACKER

Where does all my money come from?

A step further Is your income more or less than you thought it was?

Does this feel like a typical month for you?

Wondering about the difference between net and gross income? Gross income is what you earn before taxes or other deductions are taken from your pay. Net income is your gross income minus taxes and other deductions.

Additional resources You may qualify for additional benefits. Check here: benefits.gov

This tool will help you:

What you’ll need:

§§ Get a total picture of your income and financial resources

** All your pay stubs and benefits statements, and records of electronic payments from the month

§§ Remember when all your funds are coming in §§ Think about how to plan your expenses to avoid gaps in your ability to pay

Some examples of income: any jobs, self-employment, seasonal work (shoveling, harvesting) Some examples of government program benefits: Disability insurance (SSI, SSDI), Social Security, TANF, SNAP

Start with one question:

How many sources of income do you have? YOUR MONEY, YOUR GOALS

Other types of income: Child support, gifts, tax refunds, help from family or friends

Does seeing your income week by week change how you think about your spending?


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Write in the names of any income and benefits that apply to you.

Fill out the table with the amounts you receive each week.

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Total up each week’s income. Circle the payments that come at a predictable time and amount. This will show you the income you can count on each month.

Week 4

Week 5


SPENDING TRACKER

Where does my money go?

A step further Are you spending money on items you don’t need? Needs are things you can’t live without, like shelter, utilities, food, clothing, and transportation. Needs may also include obligations: things you have to pay, like debt, child support, alimony, and student loans. Wants, however, are things you can choose to live without.

Needs

This tool will help you:

What you’ll need:

§§ Track your spending for a month

** All your receipts and bill statements from the month

§§ Analyze your spending by category §§ Identify areas you might cut back on §§ Set a goal to keep you on track

** Any online records of your spending ** An envelope to keep your receipts in There are free apps available to help you track your spending TIP:

Start with one question:

How much do you think you spent last month?

YOUR MONEY, YOUR GOALS

Wants

One want I will cut back on next week:


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At month’s end, total up each category.

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BILL CALENDAR

What are all my bills and when are they due?

A step further: §§ Balancing act. Enter your weekly income into the calendar to compare with your weekly bill totals. §§ Other expenses. Don’t forget things like birthday, holiday, and school expenses, or bills that are due every few months or once a year. §§ Top of mind. You can use this calendar as a daily reminder—just pin it up where you’ll see it!

One thing I’m going to try next month: This tool will help you:

What you’ll need:

§§ Get a total picture of your monthly bills

** All your bill statements from a single month

§§ Identify the weeks when you have the most money due

** Statements of any bills that are online

§§ Plan how to pay your bills on time and avoid late fees §§ Remember when your bills are coming up

Some examples of bills: utilities, rent or mortgage, phone, memberships, cable, credit cards, car payments, student loans, child support, insurance

Start with one question:

When you pay your bills on time, how do you feel? YOUR MONEY, YOUR GOALS


Use this bill calendar to see all your bills and when they’re due.

Label the calendar with the dates of the month you want to plan for.

 

Make a list of all your bills.

Enter when you receive income into the calendar.

For each bill, mark the payment date: 7 days before the due date for mail, 2 days before the due date for online.

Month of Bills:

Sunday

Monday

Tuesday

Wednesday

Thursday

Friday

Saturday


GOAL SETTING

What is one thing I want to change?

A step further Create an action plan. Think about how long it will realistically take you to reach your goal. Then, make an action plan and stick to it. Don’t forget to list any resources that might help you. For example, you might seek out information, tools and equipment, professional assistance, a loan, or find transportation.

Step 1

Resources needed:

Date to complete:

Step 2

This tool will help you:

What to do:

Resources needed:

§§ Identify the things that really matter to you

1. Pick a statement that interests you

Step 3

§§ Work toward a future that includes those things

2. Write down your goal

§§ Track your progress

§§ Take pride in making life better for you and your family

3. Share your goal with someone who will hold you to it

Start with one question:

How have you helped someone else reach a goal?

YOUR MONEY, YOUR GOALS

Resources needed:

Date to complete:

Date to complete:


One thing I’m proud of:

One promise One thing to myself: I’d like to change:

One dream I have for myself:

Who can help me?

Date to complete:


SHORT-TERM STRATEGIES

How can I get extra money out of my situation?

A step further §§ Borrow DVDs and CDs for free at your local public library. TIP: Don’t forget to return them on time to avoid late fees.

§§ Maintain your car: Keeping up on oil changes and tire pressure can save you money on fuel and repair costs. §§ See if you can increase the deductible on your car insurance to lower monthly payments. §§ Pay parking tickets and other fines on time to avoid additional charges. §§ When buying groceries, check the price label for cost per serving. TIP: S ometimes

larger quantities don’t actually save money.

§§ Consider restaurants with “Kids Eat Free” nights. TIP:

This tool will help you:

Think about this:

§§ Earn more by taking on work or charging for services

If you run out of money before the end of the month, think about ways you can increase income and decrease spending. This tool has prompts that can put you on the path toward more money in and less money out. Share options you’ve identified with others in your household and build your plan together.

§§ Get money quickly by selling stuff or expanding your benefits §§ Spend better by developing habits that save you money §§ Cut costs by avoiding fees or canceling memberships

Start with one question:

What’s something that people say you’re good at?

YOUR MONEY, YOUR GOALS

Make sure you know what each offer includes.

§§ Look for sales and coupons for things you need. §§ Check to see if you qualify for weatherization incentives or programs for your house.

By bringing in more money or resources and spending less, I want to free up:

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PRIORITIZING BILLS

How do I make tough choices in tight months?

A step further: If you have to miss a payment, try calling your creditors to tell them why. You may be able to make short-term arrangements. For example, if you are in good standing with your creditors, they may be willing to forgive the occasional fee. If you find you’re often late with a particular bill, negotiate a new due date to better line it up with the dates you receive income or benefits.

This tool will help you:

What you’ll need:

§§ Understand what might happen if you fall behind on your obligations

** Bill statements and overdue notices

§§ Assess the tradeoffs in your situation §§ Make a plan to pay this month’s most important bills

** Any letters from creditors that threaten possible eviction, repossession, default, or discontinuation of service

Start with one question:

How do you decide which bill to pay first?

YOUR MONEY, YOUR GOALS

Timing matters. The consequences for paying bills late can vary depending on how late you are. For example, utility and credit card payments received within 30 days of their due dates typically don’t affect your credit report. After 60 days, however, your credit card company may choose to raise the interest rate on your balances, which can make it take longer to pay off what you owe.

One strategy is to rotate the bills you pay each month. While not ideal, this can prevent you from losing your car or house, having a utility shut off, or getting into serious default on a loan.

Additional resources: You may also wish to contact a certified housing or a credit counselor to help you build a plan to pay your debts.

HUD Office of Housing Counseling: 800.569.4287 National Foundation for Credit Counseling: 800.388.2227


Take a breath

Resolve

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Weigh the risk of not paying certain bills right now.

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Now prioritize your bills.

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DEALING WITH DEBT COLLECTORS

How do I respond to a debt collector?

Additional resources Have more questions about debt collection? Visit Ask CFPB: cfpb.gov/askcfpb Sample letters to debt collectors can be found on the CFPB’s website: cfpb.gov/askcfpb/1695/ Having an issue with debt collection? Submit a complaint with the CFPB: help.cfpb.gov/app/ debtcollection/ask#current Need debt counseling? To find a certified nonprofit credit counselor, call National Foundation for Credit Counseling: 800.388.2227

This tool will help you:

Know your rights:

§§ Take actions to verify whether the claim is valid

A debt collector cannot:

§§ Know how to dispute the claim if you do not owe the debt §§ Know what to do next if you do owe the debt

§§ Call repeatedly to harass or abuse you §§ Use obscene language §§ Threaten you to take actions they can’t or don’t really plan to take §§ Publish your name for not paying a debt

If a debt collector sues, be sure to keep records and respond to any court documents. If you can’t go to court on the scheduled date, you may want to find an attorney to help you ask for a different date. Need help finding a lawyer? lawhelp.org and lsc.gov/what-legal-aid/find-legal-aid

§§ Lie to you If debt collectors harass you, they may be violating the law.

Start with one question:

Are debt collectors contacting you? YOUR MONEY, YOUR GOALS

Need to submit a complaint? cfpb.gov/complaint

This guide references third-party resources or content that consumers may find helpful. The inclusion of links or references to third-party sites does not necessarily reflect the Bureau's endorsement of the thirdparty, the views expressed on the outside site, or products or services offered on the outside site. The Bureau has not vetted these third-parties, their content, or any products or services they may offer. There may be other possible entities or resources that are not listed that may also serve your needs.


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I do not think that you are the right person to pay.

I already paid this debt in full or settled it.

Other:

plan that will give you more time to pay down your debt.

§§ OR, pay the debt in full and move on. If the claim is not legitimate, don’t delay! If I don’t pay for If I don’t pay Sendand theutilities… debt collector a for obligations… housing letter (or use the form to the right) disputing the claim immediately. You may lose your ability to dispute the claim if you wait until after a court issues judgment. Fees I can avoid…

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§§ the original creditor’s name and address

§§ Try to settle with the debt collector for a smaller amount that will fully resolve the account. (You can do this yourself by contacting the collector.)

account number

§§ the collector’s name and address

If the claim is legitimate, don’t despair! At least now you know what you’re Need help dealing with still have Need help finding dealing with. You debt and foreclosure a lawyer options:

Check all that apply:

Need help paying

utility billsthe Be cautious. Don’t give debt collector sensitive info like your full Social Security or bank account numbers. No matter what they say, you don’t have to give it to them.

The amount is wrong.

Ask for information. If you’re not sure about the debt or the amount, send a letter help to finding (or useNeed the form the right) a job asking for:

Make sure you recognize the debt. Does this debt collector have the right to collect it?

Resolve.

I am writing about

Ask questions.

This is not my debt.

Be sure.

Resolve

My address is

Take a breath

My name is

Be sure

Ask a question

I want to dispute this debt because:

If a debt collector contacts you, don’t ignore it!


RESOURCE CARDS

Who else can I turn to for help?

A step further Make sure you get unbiased information. It’s important to get accurate, up-to-date information. Unbiased individuals and organizations 1) do not try to sell you products and services, 2) do not ask for payment up front, 3) are able to show you the impact any actions you take may have on your financial situation.

Key questions for additional resources: Y N

These resources may help you:

What to do:

§§ Pay utility bills

1. Add any relevant local resources

§§ Find a job or benefits §§ Deal with debt

2. Photocopy and cut into eight referral cards

§§ Get a response from banks and debt collectors

3. Keep the cards in your wallet or a handy place

§§ Find a lawyer

§§ Explore health care programs

Start with one question:

Is there anything else you're concerned about? YOUR MONEY, YOUR GOALS

1. Does this individual or organization earn revenue by selling financial products or services?

* *

2. Does it require cash up-front?

* *

3. Has the state Attorney General’s Office or Better Business Bureau, or another entity taken action against it?

* *

If the answer to 1, 2, or 3 is “yes,” consider finding a different source of information.

Y N 4. Can it provide references?

* *

5. Will it provide unbiased information and not try to sell you financial products or services?

* *

6. Do you know anyone personally whom it has helped?

* *

If the answer to 4, 5, or 6 is “no,” consider a different place to seek information.


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Ask a question

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For more information, service providers can refer to the full “Your Money, Your Goals” toolkit online at cfpb.gov/your-money-your-goals If you’re having a problem with a bank account, credit card, student loan, consumer loan, or other financial products or services you can submit a complaint with the CFPB at cfpb.gov/complaint For answers to commonly asked questions you might have about other money matters, visit “Ask CFPB” at cfpb.gov/askcfpb Mail Consumer Financial Protection Bureau P.O. Box 4503, Iowa City, IA 52244 Toll-free phone 855.411.2372 Monday–Friday 8:00 a.m.–8:00 p.m. (EST) TTY/TDD phone 855.729.2372 Fax 855.237.2392

Consumer Financial Protection Bureau


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