4 Things to Do If You Can't Pay Your Bills
- If you can’t pay all your bills, be proactive and reach out to creditors.
- Increasing your income with a side hustle could help you get the money to pay your bills.
- If you have to choose which bills to pay, prioritize by focusing on the consequences of nonpayment.
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According to Pew Research Center, around a quarter of Americans can’t pay all of their monthly bills, or can only make partial payments.
It's a tough spot to be in. There are debt relief options that might reduce what you owe if debt is part of the situation. However, these solutions can take time.
If you find yourself in this situation, there are four things you can do right away. They can help you deal with the immediate crisis of not having enough money to pay the bills, and give you breathing room to explore long-term solutions.
1. Reach Out to Creditors
Start by contacting your creditors. Many lenders and credit card providers are willing to work with customers experiencing hardship. Some lenders will pause your payments during periods of hardship. For example, credit card forbearance could apply in some circumstances. Some lenders may also reduce your interest rate, extend your repayment period, reduce fees, or otherwise make payments more affordable.
When you reach out, be ready to provide information about your finances, including whether your difficulty paying the bills is likely to be permanent or temporary. This can shape which options are available.
2. Look Into a Side Hustle
If your current income isn't stretching far enough, there are lots of side hustle options. They include driving for a rideshare company, pet sitting or dog walking, babysitting, tutoring, freelance writing, or selling arts and crafts.
Think about your strengths and weaknesses, and look for a side hustle you can do regularly—and preferably one that you will enjoy. If you can find a niche no one is filling, you might eventually consider turning your side hustle into a full-time business.
3. Sell Unneeded Items
If you have an immediate need for help paying your bills, look for items you don't need and could sell. Maybe you have outdoor equipment you don't use very often, or toys your kids have outgrown.
Finding things to sell could help you to avoid late payments or missed payments that damage your credit score. You could even host a garage sale or virtual garage sale, or see if your friends and neighbors have things you could help them sell for a percentage of the sales price.
4. Prioritize Based on Consequences of Nonpayment
If you can't find a solution that allows you to pay everything, prioritize what to pay first. To do this, focus on the importance of the debt, and the consequences of not paying. For example, not paying your mortgage could lead to foreclosure, which could be devastating. Losing your car could also lead to serious problems. Paying utility bills to keep your family warm and comfortable is always a top priority, too.
Once you have covered these absolute essentials, prioritize paying child support because of your obligation to your kids. It’s also a debt that doesn't go away, and carries the potential for severe penalties for nonpayment.
Next, consider income tax debts, since the penalties can be very serious.
Unsecured debts and credit cards are usually lower priorities. Though it’s important to make minimum payments if possible, it’s more important to cover your essential bills first. You typically don't lose your house if you don't pay unsecured debts and, in most cases, don't face legal action.
You may also be able to look into settling unsecured debts for less. Learn how Freedom Debt Relief can help by exploring how Freedom Debt Relief works and reading Freedom's FAQs. If you can get these debts off your plate over time, that may be a good long-term solution to help free up more money to cover other bills.
Debt relief by the numbers
We looked at a sample of data from Freedom Debt Relief of people seeking credit card debt relief during December 2025. This data reveals the diversity of individuals seeking help and provides insights into some of their key characteristics.
FICO scores and enrolled debt
Curious about the credit scores of those in debt relief? In December 2025, the average FICO score for people enrolling in a debt settlement program was 593, with an average enrolled debt of $25,843. For different age groups, the FICO scores varied. For instance, those aged 51-65 had an average FICO score of 588 and an enrolled debt of $27,829. The 18-25 age group had an average FICO score of 556 and an enrolled debt of $17,051. No matter your age or debt level, it's reassuring to know you're not alone. Taking the step to seek help can lead you towards a brighter financial future.
Credit card debt - average debt by selected states.
According to the 2023 Federal Reserve Survey of Consumer Finances (SCF) the average credit card debt for those with a balance was $6,021. The percentage of families with credit card debt was 45%. (Note: It used 2022 data).
Unsurprisingly, the level of credit card debt among those seeking debt relief was much higher. According to December 2025 data, 88% of the debt relief seekers had a credit card balance. The average credit card balance was $16,010.
Here's a quick look at the top five states based on average credit card balance.
| State | Average credit card balance | Average # of open credit card tradelines | Average credit limit | Average Credit Utilization |
|---|---|---|---|---|
| Alaska | $18,904 | 7 | $24,102 | 81% |
| District of Columbia | $16,247 | 9 | $28,791 | 78% |
| Alabama | $13,021 | 9 | $27,261 | 78% |
| Oklahoma | $13,959 | 8 | $25,731 | 77% |
| Kentucky | $12,599 | 8 | $26,156 | 77% |
The statistics are based on all debt relief seekers with a credit card balance over $0.
Are you starting to navigate your finances? Or planning for your retirement? These insights can help you make informed choices. They can help you work toward financial stability and security.
Manage Your Finances Better
Understanding your debt situation is crucial. It could be high credit use, many tradelines, or a low FICO score. The right debt relief can help you manage your money. Begin your journey to financial stability by taking the first step.
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Author Information
Written by
Kimberly Rotter
Kimberly Rotter is a financial counselor and consumer credit expert who helps people with average or low incomes discover how to create wealth and opportunities. She’s a veteran writer and editor who has spent more than 30 years creating thousands of hours of educational content in every possible format.
Reviewed by
Christy Bieber
Christy Bieber has been writing about personal finance and law for 16 years. She has a JD from UCLA School of Law with a focus on business law, and a BA in English, Media & Communications from the University of Rochester, as well as a Certificate of Business Administration.
What to do if you can't pay your bills?
If you can't pay your bills, reach out to creditors to explore options. Some creditors offer repayment plans, or pause your payments while you deal with financial hardship. Consider bringing in extra income with a side hustle.
If you consistently can't pay your bills, consider exploring debt relief options to resolve some of your debts for less than the full amount owed. Eliminating some of your debt payments may free up more money to cover expenses.
Where can I get money if I'm struggling?
If you are struggling, you can explore government benefits. Benefits.gov can help you find options in your area. You can also look into a side hustle that would help you earn more money. There are many apps that help you quickly earn extra income.
What happens if I just stop paying my bills?
If you stop paying your bills, creditors report the late payments to the credit reporting bureaus. Your credit score could go down as a result. This score is important because lenders, landlords, and others use it to determine whether they want to do business with you.
You could also face late fees, penalties, repossession, foreclosure, or court action. Rather than stop paying your bills, reach out to creditors to find solutions, or get help from a professional debt relief company.