Household bills and arrears
Several small bills can add up to a big worry. Here’s how to see where you stand, and what you could do.
What these bills are
Household bills here means the regular costs of running a home other than energy, water, rent or council tax: mobile and broadband, the TV licence, insurance and subscriptions.
Some are more urgent. Insurance you’re legally required to hold, and a TV licence (where not having one can lead to prosecution), may need to come before other debts. Others, like a catalogue account, are usually non-priority.
What can happen
It depends on the bill, but these things are common.
Late fees and a lost service
Providers may add charges, limit your service or cancel the contract if bills go unpaid.
Early exit costs
Cancelling a contract part-way through may mean paying what’s left. Check your terms first.
Collection and credit file marks
Unpaid contracts can be passed to a collection firm and may be recorded on your credit file.
Legal action
For some bills, such as a TV licence or required insurance, unpaid amounts can lead to court action.
What you can do now
List every bill
Note the provider, the monthly cost, when any contract ends and what you owe. Go through your bank statements to catch any you’ve forgotten.
Separate must-haves from nice-to-haves
Decide what you can’t do without, such as a phone for work or insurance you need by law. Then see which bills could be reduced or paused.
Ask your provider for help
Many offer lower-cost tariffs, payment plans or a pause for people in difficulty. They don’t have to agree, but it is worth asking.
Check for cheaper deals
A cheaper tariff may be available, but check for exit fees first and don’t take on new credit to switch.
Use the budget planner
Seeing all your income and bills together may show where there’s room, and which bills to deal with first.
When to get help
Speak to an adviser if you can’t tell which bills to pay first, an account has gone to a collection firm, or bills are one of several debts.
Signs it may be time to talk to someone
- You can’t tell which bills matter most.
- A collection letter or court papers have arrived.
- You are using credit to pay household bills.
- Different providers are asking for more than you can pay.
Free, impartial advice is available from MoneyHelper, StepChange and National Debtline. MoneyHelper
General information, not advice. Rules can differ in Scotland and Northern Ireland.
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