Behind on Bills? Here’s What to Do Before It Hits Your Credit

Being behind on bills doesn’t mean you’ve failed. It means you need a plan. For many Veterans and military families, financial setbacks can hit hard and fast, especially during major life transitions. Whether it’s unexpected medical expenses, a PCS-related disruption, or a gap between military and civilian pay, late bills can feel overwhelming and threatening to your credit.

But here’s the good news: taking small, informed steps now can stop the situation from getting worse.

Step 1: Get Honest With Yourself (and the mail)

Start by facing the numbers. Unopened envelopes, missed emails, and ignored notifications won’t make the problem go away. Visibility gives you power.

Grab a notepad or open a spreadsheet and write down:

• What bills are late?
• How much do you owe?
• How many days behind are you?
• What are the consequences (cutoff, late fee, credit reporting, etc)
  
  

This quick “inventory” helps you prioritize which bills to address first, usually those that impact housing, transportation, or credit directly.

Step 2: Call Before They Do

One of the biggest myths is that you can’t negotiate until you have the money. Many companies have hardship programs, payment extensions, or lower-cost options if you reach out.

Not sure what to say? 

Try this: “Hi, I’m a Veteran  facing a short-term financial hardship. I’d like to avoid this impacting my credit. Are there payment options or assistance programs available?”

This approach works with:

• Credit card companies
• Utility providers
• Medical billing offices
• Phone and internet services

Step 3: Know What Affects Your Credit

Not all late bills hit your credit report, but the ones that do can linger for years. Here’s what to keep in mind:

• Rent, phone, and utilities usually don’t affect credit unless they go to collections
• Credit cards, loans, and mortgages usually report late payments after 30 days
• VA or federal debts may show up in different systems but still matter for things like loan approval
  
  

You still have a window to act before damage is done.

Step 4: Use Free Credit Counseling

Nonprofit credit counseling isn’t just for “serious” debt. It’s a preventive tool. These counselors can:

• Help you create a repayment plan
• Contact creditors on your behalf
• Help reduce interest or waive fees
  
  

If you’re not sure where to start, our partners at the Foundation for Financial Planning offer free financial coaching to Veterans and military families. Learn more at VeteranSaves.org/resources.

Step 5: Rebuild a Safety Net

Once you’re caught up (even if it’s just a little), shift into “protection” mode.
Here’s what helps:

• Set up auto-pay for minimum payments, even if it’s just $10
• Cancel subscriptions you don’t use
• Add calendar reminders for due dates
• Build a $500 emergency fund, one small transfer at a time

Need Support? 

Veteran Saves offers free financial coaching through our partnership with the Foundation for Financial Planning. You can also take the Veteran Saves Pledge to build better savings habits.