Review Your Bills for errors

As you create a plan to get current on your bills, make sure the charges are correct by taking the following steps.

1. Read each bill carefully for accuracy, especially if you’ve missed some payments.

• Cell phone bill: Make sure your monthly charge is the one that’s on your contract. If you went over your minutes limit, examine how much extra you’re being charged.

• Mortgage: Examine principal and interest charges, as well as the escrow account if it’s used for property taxes and insurance. If the amounts don’t match your loan agreement or if you have any questions about the amounts, call your lender.

• Electric bill: If the charge is higher than you expected, are there any new appliances or accessories that could cause the higher bill? Electric heaters, for example, use a lot of energy to operate.

 

2. If you find errors, write down each charge in question and ask yourself these questions:

• Is this charge accurate?
• Have I already paid this bill or part of it?
• Was my payment credited to my account?
• Are the late fees warranted? Are there other fees?
• Has my interest rate been increased?
• Did I approve of this charge?
• Did another family member or a friend make this charge without my permission? Read more about fraud.

3. Call the telephone number listed on your bill and ask the company about inaccurate charges, fees, and interest-rate changes. Ask if the company will waive the extra fees. If someone fraudulently made charges on your account, explain what happened so the creditor can start an investigation into the matter.
    
4. If you’re late on bills, contact your creditors and try to negotiate a payment plan that fits your budget. Can you pay less than the minimum due each month for a certain number of months, or perhaps pay a certain fixed amount, such as $25? Can you pay interest only for a while, or skip a payment and get back on track next month? Your creditors will be more likely to work with you if you call proactively rather than waiting until they are forced to call to see if you will pay.
    
5. Know your due dates. For all outstanding debts and current bills, organize them in order of due dates. Keep track of your debts and bills going forward by marking on a calendar when each due date is. You don’t want to add to your balances by being late on any future payments.