Short answer: before you borrow, call 211, the number set aside for community information and referral services (FCC), and ask what local help exists for the bill you face. For heating or cooling bills, ask about LIHEAP (HHS). Then call the companies you owe and ask for a hardship plan or more time. Help depends on where you live, your income and the program's funds, so none of these is certain; ask early.
Where to ask, by type of expense
| Expense | Where to ask | What it can cover |
|---|---|---|
| Any urgent need | Dial 211 | Referral to community services in your area (FCC) |
| Heating or cooling bills | Your state or territory LIHEAP office; Energyhelp.us; National Energy Assistance Referral line 1-866-674-6327 | Help with home energy bills, energy crises, weatherization and minor energy-related repairs (HHS) |
| Home weatherization | Your state Weatherization Assistance Program (WAP) office | Home improvements that save energy; eligibility depends on income or on benefits such as TANF or SSI (USAGov) |
| Phone or internet bill | The Lifeline program | Discounted phone or internet service for people with a low income (USAGov) |
| A bill you already owe | The company or lender itself | A payment plan, forbearance or adjusted schedule, if it agrees (CFPB) |
Energy bills: how LIHEAP works
- Eligibility is based on income, and every state and territory sets its own requirements (USAGov).
- You apply through your state or territory's LIHEAP office; some take applications online, others in person (USAGov).
- Depending on where you live, it may also help with electric bills (USAGov).
- LIHEAP does not give grants directly to individuals and does not charge a fee for a benefit. A message offering a LIHEAP grant or asking for a fee should be reported to the HHS fraud hotline at 1-800-447-8477 (HHS).
- If your power or gas is about to be shut off, each state has its own rules on when a utility can disconnect, which may depend on the weather, your age or a disability (USAGov). Ask your utility and your state about them.
Ask the companies you owe
Lenders might be willing to work with you, and the CFPB says to be proactive to avoid extra fees and harm to your credit. Ask for forbearance or an adjusted repayment schedule, and for a clear explanation of what the lender can offer (CFPB).
- Call before the due date, say what you can pay and when, and ask what the plan costs.
- Get any agreement in writing, with the amounts and dates.
- For a medical bill, ask the hospital about financial assistance first; see medical bills: payment plan vs personal loan.
- If a loan payment is the problem, see what happens if you miss a loan payment, and for a payday loan, can't repay a payday loan.
A pay advance from your employer
Some employers offer early access to pay you have already earned, through a provider. Ask whether it is free, what a faster transfer costs and how it is paid back from your paycheck. The CFPB studied employer-partnered products in 2024 and found that when workers paid a fee, it averaged about $3.18 per transaction, with an average transaction of $106 (CFPB). Its two examples, as an APR:
| Amount | Fee | Until payday | As an APR |
|---|---|---|---|
| $106.00 | $3.18 | 10 days | 109.5% |
| $50.00 | $3.18 | 4 days | 580.4% |
APR = fee / amount x 365 / days. The CFPB says actual APRs vary with the amount, fee and time, and that smaller, shorter advances have higher APRs (CFPB). Compare it with your other options.
If you still need to borrow
Look first at credit union payday alternative loans, and compare offers by APR and total of payments (how to read a loan disclosure). If an overdraft is the alternative, see overdraft fees vs a small loan.
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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.
Sources
- FCC 00-256: assignment of 211 for community information and referral services (July 2000)
- HHS Administration for Children and Families: Low Income Home Energy Assistance Program (LIHEAP)
- USAGov: Get help with energy bills
- USAGov: Help with utility bills
- CFPB: Start recovering and rebuilding your financial life (managing your bills)
- CFPB: Data Spotlight: Developments in the Paycheck Advance Market (July 18, 2024)