When You Can't Pay Your Debts FAQ

Questions:

• I feel completely overwhelmed by my debts and don't know where to begin. What should I do?
• I might have to miss a car payment. Should I let the lender repossess?
• How soon after I miss a house payment will the bank begin foreclosure proceedings?
• If foreclosure is looming, might I be better off just selling my house?
• My utility bill was huge because of a very cold winter. Do I have to pay it all at once?
• When can a creditor garnish my wages?

Answer:

My utility bill was huge because of a very cold winter. Do I have to pay it all at once?

Maybe not. Many utility companies allow customers to participate in an amortization program. This means that if your costs are higher in certain months than others, the company averages your yearly bills so you can spread out the larger payments. Also, if you are elderly, disabled, or have a low income, you may be eligible for reduced rates. Ask your utility company.