Paying bills is essential to being financially responsible, but circumstances may derail us. In our daily lives, there might be instances when we can’t afford to pay certain bills on time, possibly due to emergent expenses or low cash flow. Most of the time, these delays attract penalties but this is not the case with every bill. Some bills give a grace period or some payment flexibility so we can have more time without getting charged. Here are the bills that provide a grace period or flexibility for payment.
Utility Bills
Most utility companies give utility bills a lag period of 10-30 days after the due date. This is to cater to customers who may not be able to make their payments on time as initially agreed. A report from the National Energy Assistance Directors Association highlights that almost 20 million households don’t pay their energy bills on time in the United States. This grace period can be very beneficial for them.
Rent
Though it is wise to pay rent on time, some landlords allow a specific number of days, usually a few days, to give a late fine on rent payments. Such grace period is determined by the lease terms and conditions you agreed to abide by and the laws in your State. For example, as stated by Nolo, a legal advice website, some states control the amount of money that can be charged as a late fee on rent, which can also help.
Credit Card Payments
Most credit card providers allow users to make payments after the due date for a limited number of days, which usually takes 21 days from the date of the statement. This grace period gives a chance to clear your balance without having to pay any form of interest or fee added to your bill. However, it is essential to read all the terms and conditions related to the grace period before applying for a credit card.
Student Loans
Federal student loans mostly have a grace period in which no charges are added to the loan; it is roughly six months. On the same note, federal student loans have flexible repayment terms and ways of getting a deferment if the former borrower cannot continue making payments. This prevents the incurring of fees and keeps the loan account active. Other features, such as grace periods, may also exist in private student loans, but this may differ from one lender to another.
Car Insurance Bills
Most car insurance companies allow policyholders a 10 to 20-day grace period for non-payment of premiums, depending on the policy and your location. It means your coverage continues uninterrupted during this grace period while you are not charged a dollar more in anticipation of a late payment.
Mortgage Bills
Most mortgage lending companies allow for this timeframe of 10-15 days after the payment due date before they demand an extra fee. This period is made to accommodate some leeway for some shocks that may affect a firm financially. Using data from Bankrate, the average monthly mortgage payment in the U.S. is around $1,600, which underscores the fact that paying off a home mortgage is a major expense for most homeowners.
Phone and Internet Bills
Telecommunications service providers always give some leeway before they start charging penalties, which is about ten days from the date the bill is considered due. Nevertheless, the policies are rather diverse according to the provider and your choice of a particular plan. Therefore, it is recommended to look through the contract or contact the provider to know their specific conditions. A report shows that the average monthly cost for a cell phone bill in the U.S. is $141, which may prove expensive where many lines are involved.
Cable and Streaming Bills
Television cable and streaming services charge high interest rates, usually higher than other bills. Most providers provide a leeway of approximately 10 to 15 working days in which you can afford to pay your bill late without being charged more fees. However, it could be different depending on the provider, it is better to contact your provider to know the exact time of the grace period and ensure uninterrupted services.
Health Insurance Bill
Health insurance is one of the significant insurance bills most Americans pay. If you fail to pay the premium on time, you usually get a 3-month grace period to clear all your dues. However, the conditions of this grace period can differ depending on your health insurance provider, and certain other conditions, such as you need to pay at least one month’s premium during the year, are also applicable. Therefore, it’s essential to fully understand the rems of the grace period when purchasing health insurance.
Garbage Collection Bills
Garbage collection is an example of a service where, for instance, there might not be a fee immediately but if you pay later than you are supposed to. Some municipalities even allow up to 15 days of grace period for the city’s residents to give them some relaxation. A report highlights the present price for waste collection services may cost as low as $20 up to $80 per month, depending on your location.
Homeowners Association Bills
A block to guard is another expense that most homeowners pay monthly or quarterly, depending on their neighborhood’s by-laws. Still, these HOAs allow for a grace period of 10 to 15 days before charging the homeowner extra fees on the amount. According to Investopedia, it is approximated that 25 % of homeowners in the US live in an HOA-governed community, and the annual fees range between $200 and $1000.
Life Insurance Bills
Life insurance bills usually provide 30-day grace period to settle the premium payment before charging any penalty or policy being lapsed. Your policy remains in effect during the grace period, but if you miss a payment even after the grace period, it may lapse. However, it can vary depending on your life insurance policies and insurer. Read all the terms and conditions thoroughly related to the grace period to avoid any unexpected issues.
