Sure it’s a cliché, but it bears repeating: “There’s too much month on the end of my money.”

Not everyone is a financial wizard and not everyone is independently rich. Budgeting is hard, and surprises await those unprepared with a three-month emergency cash cushion.

Of course, some may think, “What’s the worst that could happen if I don’t pay my bills?” The comprehensive answer to that simple question is “Well, it depends.”

it is inconvenient

When it comes to utilities, cutoffs are the first line of defense against nonpayment. Very few people like to do without electricity, natural gas, water, etc. Closing them is usually enough of an incentive not to fall behind.

Taking time off from work to be home to reconnect is not only a pain in the neck, it also puts a strain on work life. Gas companies will generally not restore service without someone present, so they can take the necessary safety precautions.

Eventually, the customer will have to talk to someone about the non-payment. Dealing with bill collectors isn’t just a hassle, it’s embarrassing. Collection agents are doing their job and they don’t care why you didn’t get paid.

Costs more.

Almost any company you do business with will charge late fees. Whether it’s a percentage or a flat fee, it ends up impacting the budget, making the next month short on money as well.

Utilities will charge you reconnection fees each time they disconnect service. This can be up to half of the average monthly bill, although most charge a flat rate. Since the customer has more than one keg, he has no choice but to pay for it or do without, so it’s never cheap. This, of course, is in addition to the already assessed late fees.

Credit card companies and banks will charge higher interest rates. And part of the fine print on almost any credit card agreement says that the interest rate will go up if you pay X times late. For some credit issuers, X=1.

If it gets to a point where lawyers are involved, legal fees are not cheap. Not only do lawyers have to be paid, they have their own unique ways of charging for everything, and nothing is cheap when it comes to lawyers. Do not forget that the court costs and administrative expenses; In addition, if the loser in some states also has to pay the legal fees of the opposing party.

Long-term effects are the most worrying.

Not paying bills affects all aspects of life, from purchasing power to the ability to lead a normal life.

It will definitely affect the credit rating. Most issuers of credit reports to three major credit bureaus; Experian, TransUnion and Equifax. Each generates a score based on a number of factors that give credit issuers an idea of ​​what to expect from a potential borrower. Depending on the crimes, it will stay on a credit report for up to seven years. Credit card companies, if they even issue a card, will charge more interest, higher annual fees.

A bad credit rating makes it more difficult to get a loan. Planning to buy a house? You won’t get a good interest rate if the bank thinks you’re a bad credit risk. And if you get approved, you’ll pay a higher interest rate and have mortgage insurance longer.

If the bill in question is a car loan, recovery becomes an issue. So now there’s no way to get to work, and unless you have some really supportive friends, no way to get around for groceries and other mundane tasks that are made easier by having a vehicle.

The best way to avoid getting into a situation is to plan. Make a budget and stick to it. Plans and priorities change, and when something unexpected comes up, like a trip to the emergency room or car repair, decisions have to be made. Plan for that occurrence, too.