Business

How Not to Pay Your Bills

Published

11 years ago

February 19, 2015

In this Thursday, Nov. 27, 2014, photo, a woman pays for merchandise at a Kohl's department store in Sherwood, Ark. Relying on credit for holiday shopping without a plan to pay off the debt quickly can easily cost you more in the long run. (AP Photo/Danny Johnston)

In this Thursday, Nov. 27, 2014, photo, a woman pays for merchandise at a Kohl’s department store in Sherwood, Ark. (AP Photo/Danny Johnston)

(CBS News) – Americans increasingly are falling behind on their auto and student loans, new figures from the Federal Reserve Bank of New York show (see chart at bottom). If you’re struggling to pay your bills, here’s how you can contain the potential damage to your finances.

Contact your lenders. You may qualify for a loan modification or a temporary reduction in your payments. Federal student loan debt is particularly flexible, offering a number of repayment options. Those include a “Pay as You Earn” plan that can reduce your required payment to zero if your income is low. Auto lenders may let you skip a payment or even refinance your debt, depending on your credit scores and the lenders’ policies. People resist calling their lenders, “but that’s the wrong response,” said Phil Reed, senior consumer advice editor for car site Edmunds.com. “They really don’t want you to default… they really are trying to keep you in the game.”

Understand the consequences. Even one skipped loan or credit card payment can devastate your credit scores, but how lenders report and react to delinquencies varies considerably. With an auto loan, for example, the lender can repossess your car if you’re a single day late with a payment, although most wait until you’re 30 days or more to start the collections process. Delinquencies on federal student loans, by contrast, typically aren’t reported to the credit bureaus until you’re 90 days overdue, and you’re not considered in default until you’re 270 days late. Even then, you have options to “rehabilitate” your loans and erase some of the credit history damage. Private student lenders aren’t as forgiving — many report delinquencies after 30 days and start collections soon after. Credit card issuers differ in how they react to delinquent debt, but after six months most send the debt to collectors.

Oakland Post

Posts by Oakland Post

Up Next

Going on the Offensive Against Robocalls

Don't Miss

How Not to Pay Your Bills

Oakland Post

Click to comment

Activism

Oakland Post: Week of March 18 – 24, 2026

The printed Weekly Edition of the Oakland Post: Week of March 18 – 24, 2026

Published

2 weeks ago

March 22, 2026

Oakland Post

To enlarge your view of this issue, use the slider, magnifying glass icon or full page icon in the lower right corner of the browser window.

Oakland Post

Posts by Oakland Post

Advice

Financial Wellness and Mental Health: Managing Money Stress in College 

While everyone’s financial situation is unique, several common sources of stress have the potential to strain your financial health. These include financial and economic uncertainty, existing debts, unexpected expenses, and mental or physical health changes. Financial stress may differ from situation to situation, but understanding the factors contributing to yours may help you begin to craft a plan for your unique circumstances.

Published

2 weeks ago

March 17, 2026

Oakland Post

Sponsored by JPMorganChase

As a college student, managing financial responsibilities can be stressful.

If you’ve found yourself staying up late thinking about your finances or just feeling anxious overall about your financial future, you’re not alone. In one survey, 78% of college students who reported financial stress had negative impacts on their mental health, and 59% considered dropping out. While finances can impact overall stress, taking steps to manage your finances can support your mental, emotional and physical well-being.

When it comes to money, the sources of stress may look different for each student, but identifying the underlying causes and setting goals accordingly may help you feel more confident about your financial future.

Consider these strategies to help improve your financial wellness and reduce stress.

Understand what causes financial stress

2. Determine your financial priorities

Start by reflecting on your financial priorities. For students this often includes paying for school or paying off student loans, studying abroad, saving for spring break, building an emergency fund, paying down credit card debt or buying a car. Name the milestones that are most important to you, and plan accordingly.

3. Create a plan and stick to it

While setting actionable goals starts you on the journey to better financial health, it’s essential to craft a plan to follow through. Identifying and committing to a savings plan may give you a greater sense of control over your finances, which may help reduce your stress. Creating and sticking to a budget allows you to better track where your money is going so you may spend less and save more.

4. Pay down debt

Many students have some form of debt and want to make progress toward reducing their debt obligations. One option is the debt avalanche method, which focuses on paying off your debt with the highest interest rate first, then moving on to the debt with the next-highest interest rate. Another is the debt snowball method, which builds momentum by paying off your smallest debt balance, and then working your way up to the largest amounts.

5. Build your financial resilience

Some financial stress may be inevitable, but building financial resilience may allow you to overcome obstacles more easily. The more you learn about managing your money, for instance, the more prepared you’ll feel if the unexpected happens. Growing your emergency savings also may increase resilience since you’ll be more financially prepared to cover unexpected expenses or pay your living expenses.

6. Seek help and support

Many colleges have resources to help students experiencing financial stress, like financial literacy courses or funds that provide some assistance for students in need. Talk to your admissions counselor or advisor about your concerns, and they can direct you to sources of support. Your school’s counseling center can also be a great resource for mental health assistance if you’re struggling with financial stress.

The bottom line

Financial stress can affect college students’ health and wellbeing, but it doesn’t have to derail your dreams. Setting smart financial goals and developing simple plans to achieve them may help ease your stress. Revisit and adjust your plan as needed to ensure it continues to work for you, and seek additional support on campus as needed to help keep you on track.

 JPMorgan Chase Bank, N.A. Member FDIC