LOS ANGELES - January 20, 2021 - (Newswire.com)

For most families, electricity is one of the largest household expenses aside from your rent or mortgage.

The pandemic and the lockdowns have financially strained many, as businesses had to close and furlough or lay off employees — leaving many people struggling to pay their bills.

If you need help with the electric bill, you have options. Follow these five tips to keep the lights on.

1. Negotiate with the Utility Company

Utility bills can be negotiated, especially in a deregulated energy market (in other words, a state where you can choose your provider).

But you can negotiate in regulated markets, too — it'll be more challenging, but it's worth a try.

In a regulated market, bring up your history of on-time payments to your provider. If you pay on time, every time, the utility company may give you a small break on rates.

With that said, the rep may state that they aren't authorized to change your bill. Don't give up yet. Instead, ask to speak with someone who can.

If you live in a deregulated market, you have more negotiating room. To prepare, gather rate information from your provider's competitors and use those comparisons when negotiating for a lower rate. They may oblige in order to keep your business.

In either case, you may not get a direct rate decrease, but you may be able to negotiate other discounts. For example, you could earn credits for reducing your use at certain times.

2. Consider a Credit Card or Loan

If you're waiting on a paycheck and will be able to cover the bill once it arrives, consider using a credit card to pay the bill on time. Doing so allows you to push the bill out a month, giving you time to get paid and pay the bill.

Just be wary of processing fees. Credit card companies charge merchants these fees when they take a credit card as payment. The merchant often passes the cost onto you.

If your credit card has a high interest rate and fees and you're worried about your ability to repay your bill, a short-term loan is another alternative. It's possible to get personal loans for smaller amounts of money that you can pay back in smaller installments over time. This can offer more room to get back on your best financial footing, although it will also come with an associated interest rate.

3. Seek COVID-19 Resources

Many state governments have created programs to help citizens impacted by COVID-19 to pay their utility bills. Look on your state government's website for the most relevant resources to your locality.

If you don't see what you need online, contact your state government to see what they have available in terms of assistance or if they can point you towards other COVID-19 resources.

4. Seek Other Resources

The Low-Income Home Energy Assistance Program (LIHEAP) helps you pay your energy bills and get low-cost weatherization equipment (to increase your home's energy efficiency) if you meet their income requirements.

Outside of the government, you can also ask your utility provider if they have financial assistance programs or credits available. Churches and charities often offer assistance with paying energy bills as well.

5. Find Ways to Cut Your Utility Bill Next Month

Cut next month's utility bill with these tips:

• Turn off lights and electronics when not in use: Double check that any device you aren't using is off and turn off any lights when you leave each room.
• Install energy-efficient bulbs: These use less energy than traditional bulbs and last for a longer period of time.
• Use your dryer during non-peak hours: Avoid drying clothes between 4 and 7 pm. That's when most people do laundry, driving up energy rates.
• Use shades/curtains in the summer: Doing so keeps out the sun's heat, reducing your need for A/C.
• Cut your budget in other areas if possible: Take a hard look at your budget and slash anything that isn't necessary. If you're in a tight spot, subscriptions like Netflix can go for the time being.
• Find another provider: Residents in deregulated energy markets should negotiate or seek another provider.

Notice: Information provided in this article is for informational purposes only. Consult your financial advisor about your financial circumstances.

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Original Source: What to Do if You Can't Afford Your Electric Bill This Month