Short answer: call the utility before the bill goes further past due, and ask what payment arrangement it offers. For a heating or cooling bill, apply for the Low Income Home Energy Assistance Program (LIHEAP) through your local LIHEAP office. Read any shutoff notice closely and note its dates. Compare the cost of any loan with what the utility and LIHEAP offer. This is general information, not legal or financial advice.
Step 1: call the utility
The CFPB says: “If you have to miss a payment, try calling your creditors to tell them why. You may be able to make short-term arrangements”, and “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benefits” (CFPB Your Money, Your Goals, February 2019, read October 30, 2026; this is an older publication and may be outdated). The CFPB worksheet lists gas, electric, water and sewer bills under “Things I need to stay housed and keep utilities connected”.
The sources cited here do not say what any utility must offer. Treat these as questions to ask the utility, and get the answers in writing:
- What is the full past-due amount, and what is my next bill?
- Can I pay the past-due amount over several months? How much each month, and must I also pay each new bill in full?
- Are there late fees, a reconnection fee or a deposit? Can any fee be waived?
- What happens if I miss a payment under the arrangement?
- Is there a shutoff notice on my account? What date is on it, and what stops it?
- Do you report late payments or send unpaid bills to a debt collector?
- Do you have a hardship program, or can you point me to local help?
Rules on shutoff notices and protections depend on the law where you live. If you have a complaint about the utility, the HHS LIHEAP FAQ says to contact your public utility commission (HHS).
Step 2: LIHEAP for heating and cooling bills
HHS says LIHEAP “provides federally funded assistance to reduce the costs associated with home energy bills, energy crises, weatherization, and minor energy-related home repairs”, and that LIHEAP funds can help with “preventing energy shutoffs, reconnecting services” (HHS, updated October 14, 2026, read October 30, 2026).
- Where to apply: HHS does not take applications. You apply through your local LIHEAP office; Energyhelp.us and the National Energy Assistance Referral line, 1-866-674-6327, show where to apply in your area (HHS).
- Who can get it: the law lets programs cover households that receive TANF, SSI, SNAP or certain veterans benefits, and households with incomes up to the greater of 150 percent of the poverty level or 60 percent of the median income where you live; a program may not shut out a household only for its income if that income is under 110 percent of the poverty level (42 U.S.C. 8624(b)(2), official U.S. Code text).
- Who gets more: the highest level of help goes to households with the lowest incomes and the highest energy costs or needs in relation to income, taking into account family size (8624(b)(5)).
- Renters: “Renters are eligible for LIHEAP assistance”, including those who pay energy costs through their rent, if they otherwise qualify (HHS FAQ).
- If you are turned down: the law requires a fair administrative hearing for people whose claims are denied or not acted on with reasonable promptness (8624(b)(13)).
Two limits to know. HHS says LIHEAP probably will not pay your whole bill: “LIHEAP is not meant to pay for all of your energy costs for the year, the season, or even the month.” And qualifying does not guarantee help: “On average, about 20% of households that are qualified for LIHEAP receive benefits” (HHS FAQ, current as of June 22, 2020; it may be outdated). If the money has run out, ask whether a crisis program opens later.
Energy crisis help: 48 hours and 18 hours
Each program must set aside funds for energy crisis intervention until March 15 of each program year. The law says the crisis program shall, “not later than 48 hours after a household applies for energy crisis benefits, provide some form of assistance that will resolve the energy crisis if such household is eligible”, and not later than 18 hours if the household is eligible “and is in a life-threatening situation” (42 U.S.C. 8623(c), official U.S. Code text, read October 30, 2026). If you have a shutoff notice, say so when you apply, and ask whether it counts as an energy crisis.
Water and sewer bills
HHS says LIHEAP funds “can only be used to help you pay to heat or cool your home”, and “Generally, LIHEAP funds may not be used to pay water and sewer bills”, with an exception for water used for cooling (HHS FAQ). The separate water program, LIHWAP, has ended: “Funding is no longer available for LIHWAP. Households cannot receive LIHWAP benefits at this time” (HHS, updated September 30, 2026, read October 30, 2026). HHS points people to their local community action agency, 2-1-1 and Benefits.gov for water bill help instead.
Watch for scams
HHS says: “LIHEAP does not provide direct grants to individuals; LIHEAP does not charge a fee for receiving a benefit.” If a message offers you a LIHEAP grant or asks for a fee, contact the HHS Fraud Hotline at 1-800-447-8477 (HHS). Be wary of anyone who calls about a shutoff and asks for payment in an unusual way; call the number on your bill instead. See fake loan texts and calls.
Your credit report
The CFPB says: “utility and credit card payments received within 30 days of their due dates typically don’t affect your credit report” (CFPB, February 2019; may be outdated). Ask the utility how it reports late payments. If an unpaid bill goes to a collector, see debt collector rights.
Arrangement or loan, only for the math
This example is only for the math. The $600.00 past-due balance and the 6-month arrangement are example figures; the utility decides any arrangement, and its fees are not included. The loan rate is the Federal Reserve’s August 2026 average of 11.90% APR for 24-month personal loans (G.19).
| Option | Monthly amount | Interest | Total paid |
|---|---|---|---|
| Arrangement over 6 months (example) | $100.00 plus each new bill | $0.00 (fees not included) | $600.00 |
| Loan over 24 months at 11.90% | $28.22 plus each new bill | $77.28 | $677.28 |
$600.00 / 6 = $100.00 a month. $28.22 x 24 = $677.28, so $77.28 is interest. The loan has the lower monthly amount but costs more in total and runs four times as long. Apply for LIHEAP and ask about an arrangement first; any LIHEAP help lowers what you need to cover. To check what you can afford each month, see budget for a loan payment, and for rates see what is a good APR for a personal loan.
Other help
For 211, phone and internet discounts and other help before you borrow, see emergency expense help without a loan. If rent is also behind, see rent payment help options.
Checklist
- Read the bill and any shutoff notice; write down the dates.
- Call the utility and ask about a payment arrangement; get it in writing.
- Apply for LIHEAP through your local office; say if you have a shutoff notice.
- For a water bill, ask your community action agency or dial 2-1-1.
- Never pay a fee for a LIHEAP grant.
- Compare the total cost of any loan with the arrangement before you borrow.
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Sources
- HHS Administration for Children and Families: Low Income Home Energy Assistance Program (LIHEAP)
- HHS Administration for Children and Families: LIHEAP FAQs for Consumers (published January 19, 2016, current as of June 22, 2020)
- 42 U.S.C. 8623, Payments to States (LIHEAP energy crisis intervention), official text from the U.S. Code on GovInfo (2024 edition)
- 42 U.S.C. 8624, Applications and requirements (LIHEAP), official text from the U.S. Code on GovInfo (2024 edition)
- HHS Administration for Children and Families: Low Income Household Water Assistance Program (LIHWAP) (updated September 30, 2026)
- CFPB Your Money, Your Goals: Behind on bills? Start with one step (PDF, February 2019)
- Federal Reserve: G.19 Consumer Credit (released October 7, 2026), terms of credit, August 2026: credit card plans and 24-month personal loans
Disclosure: Modern Lending Solutions is not a lender, loan broker or agent for any lender or loan broker, and does not make credit decisions. Any compensation we receive is paid by participating lenders, only for advertising services. This guide is general information, not financial or legal advice.