If your last few utility bills have left you with sticker shock, you’re not alone. Homeowners across the DMV have been facing higher electricity bills, and those who have been affected by federal government layoffs may be struggling even more.
No matter how uncertain you may feel, this isn’t the time to panic. Consider these actions instead.
Contact your energy provider. The last thing you want to happen is for a late payment to cause your utilities to be turned off or to hurt your credit score. That’s why you should be upfront with your utility provider to let them know you’re having a challenging time. Utility companies have programs in place to help homeowners adjust to the higher costs. They may allow you to pay a little bit each month or let you sign up for a budget plan. Some people have even been able to stretch payments out multiple years.
Enlist the aid of a partner. If you’re having financial challenges, you want to address them before they affect your ability to pay your mortgage. You’ve worked too hard to become a homeowner to jeopardize that. You may need to adjust your budget to reflect a new financial reality. You may also be able to tap into your equity if you find yourself in a cash crunch. HomeFree-USA offers help to homeowners and a Homeownership Advisor could help you get back on track.
Explore other financial relief. There are programs put in place to help people with utility costs when they can’t afford them. For example, The Washington Area Fuel Fund (WAFF) is a joint effort between Washington Gas and the Salvation Army that helps families pay heating bills if they are having a financial crisis. Likewise, the Greater Washington Urban League provides utility bill assistance to families in need.
Your local government may also be able to help. The state of Maryland’s Office of Home Energy Programs provides financial assistance as does DC’s Department of Energy & Environment LIHEAP Program. Check with your local energy department, as well as churches and community groups to identify other sources of funding.
Find ways to keep costs down. Don’t waste money cooling an empty house. When you’re out working and nobody is home, it’s ok to set the temperature a little higher than what’s comfortable. In fact, the U.S. Department of Energy says you can save 10% in energy costs by turning your thermostat up 7 to 10 degrees for eight hours a day (while you’re at your air-conditioned office). Of course, if you have a pet at home, you may not want to increase the temperature that much, but even a small adjustment can make a difference in your bill.
Other small changes you can make include keeping the blinds closed during the hottest time of the day (so your home stays cool) and unplugging electronic devices when you’re not using them.
Higher utility bills are likely here to stay. But you can find a solution that protects your house and your peace of mind.
Have Questions?
Talk to an advisor to find out what you can do to get back on track
