What Happens If You Miss a Bill Payment in the US?

A missed bill payment is usually fixable, especially if you catch it early. What happens next depends on the kind of bill and on how late the payment is. This guide walks through the main timelines the Consumer Financial Protection Bureau (CFPB) describes, and what to do first.

The first 30 days

The CFPB’s “Behind on bills?” handout says timing matters, because the consequences of paying late vary with how late you are. Its example: utility and credit card payments received within 30 days of their due dates typically don’t affect your credit report.

Within this window you may still owe a late fee, set out in your card agreement or your utility’s terms. The CFPB says that if you are in good standing with your creditors, they may be willing to forgive the occasional fee, so it is worth a call.

After 60 days

The handout says that after 60 days, your credit card company may choose to raise the interest rate on your balances, which can make it take longer to pay off what you owe. A missed payment that sits unpaid also builds up late fees and interest each month.

Your credit report

Once a late payment is reported, it can stay for a long time. The CFPB says a credit reporting company generally can report most negative information for seven years. That is why paying within the first 30 days matters so much.

Utilities

The CFPB’s handout asks you to weigh the risk of not paying each bill, and groups utilities (gas, electric, water and sewer) with rent and mortgage as the things you need to stay housed and keep utilities connected. If you can’t pay:

1. Call the utility before the due date and explain.
2. Ask about a payment arrangement or a hardship program.
3. Ask which shutoff protections apply where you live. Rules and assistance programs differ by state and utility, so the utility and your state’s energy assistance office are the places to check.

For phone service, the CFPB’s handout suggests calling the FCC to see if you qualify for a Lifeline phone rate: 888.225.5322.

Rent, mortgage and car payments

Alongside housing, the CFPB’s handout asks you to weigh the things you need to keep or get a job, such as a car payment, gas and insurance. It warns that late mortgage payments or an eviction can make it harder to find a new place to live if you need one. If you are behind on housing costs, the handout lists HUD’s Housing Counseling Office: 800.569.4287.

What to do after a missed payment

1. Pay as soon as you can. Paying within 30 days usually keeps it off your credit report.
2. Call the company. The CFPB suggests calling your creditors to tell them why, because you may be able to make short-term arrangements.
3. Ask for a new due date if a bill is often late. The CFPB says you can negotiate a new due date that lines up with the dates you receive income or benefits.
4. If several bills are behind, decide the order. Our guide to what to pay first walks through the CFPB’s priority tool.
5. Get free help. For debt management, the CFPB’s handout lists the National Foundation for Credit Counseling: 800.388.2227.

Keep a record

Whenever you call about a missed payment, write down the date, who you spoke to and what was agreed, such as a new due date, a payment plan or a waived fee. If the agreement is not honored later, your notes make it easier to sort out. Ask for any arrangement in writing or by email if the company offers it.

Stop it happening again

Most missed payments come from a due date that slipped past. Two simple fixes:

• Line your due dates up with your paychecks. Our biweekly pay guide shows how.
• Get a reminder before every bill. A bill tracker like Billo keeps every bill and due date in one list and reminds you 3 days early and on the day. Our guide to bill reminders compares the other options too.

Our guide to avoiding late fees covers grace periods, autopay and the federal rules on credit card due dates.