What to do when a big bill hits

First, get the facts

A flat tire the week rent is due. A dentist visit right before payday. Surprises like these are common. In the Federal Reserve’s 2025 survey, 59% of adults had at least one major unexpected expense in the year before they were asked.¹

If one just landed on you, take a breath. You likely have more options than it feels like right now. This guide walks through the first few days, one step at a time.

Start with the bill itself. A few questions can shrink it or buy you time:

• Is it in writing? Before a car repair, ask for a written estimate. If the repair is costly, or you’re not sure you need it, think about getting a second opinion.²
• Is it right? For a medical bill, ask for a list of every charge. Look for mistakes, like being billed twice for the same thing.³
• Is any of it covered? Check your insurance, and any warranty, before you pay out of pocket.
• What’s due, and when? Ask for the real due date. Ask if you can pay part now and the rest later.

Protect the basics first

If you can’t pay everything at once, you’re not alone. In 2025, 28% of adults had trouble paying their bills in the month before the survey.¹ When money is short, the order you pay in matters.

The Consumer Financial Protection Bureau (CFPB) suggests weighing what would happen if each bill went unpaid. Its worksheet flags the bills that protect your basics:⁴

• A place to live. Rent or mortgage, plus the gas, power and water that keep your home running.
• Your job. What you need to get to work and keep working: a car payment, gas or bus fare, childcare.
• Insurance you need. Car insurance is required in most states. Health, renters and home insurance count too.
• Court orders. Payments like child support.

Food belongs on that list, too. The CFPB counts shelter, utilities, food, clothing and transportation as needs.⁴ For a few weeks, pause the extras you can restart later, like takeout or a streaming service. In 2025, cutting back on other spending was the most common way people got through a month when bills were hard to pay.¹

Call before you’re late

Here’s a gap worth knowing about. Among adults who struggled to pay bills in the month before the 2025 survey, 42% paid a bill late. Only 16% negotiated a lower payment or more time to pay.¹

Asking is worth a try. If you have to miss a payment, the CFPB suggests calling the company to tell them why. You may be able to work out a short-term plan. If you’re usually on time, they may waive a late fee. And if a due date always lands before payday, ask to move it.⁴

Some bills come with their own kinds of help:

• Medical bills. Ask if you qualify for financial help, sometimes called charity care. Hospitals with nonprofit status are required to have these programs. If you still owe, ask for a payment plan with no interest. Think twice before you move the bill to a credit card. You could pay high interest and lose the chance to negotiate.³
• Rent. Your state may offer emergency help with rent. Dial 211 to find programs near you.⁵
• Other basics. USA.gov lists government programs that help with food, bills and housing.

If you must borrow, compare the cost

Sometimes a payment plan isn’t enough. If you need to borrow, compare the annual percentage rate, or APR. It’s the yearly cost of a loan, fees included. It’s the best way to compare one loan with another.⁶

Payday loans are made for moments like this, and they’re among the most costly ways to borrow. A fee of $15 for every $100 you borrow is common. Borrow $300 until your next payday, and you’ll owe $345. On a two-week loan, that fee works out to an APR of almost 400%.⁷

Before you go that route, look at these:

• A loan from a credit union. If you’ve been a member of a federal credit union for at least a month, ask about a payday alternative loan. It can run from $200 to $1,000, for one to six months. The fee to apply can’t be more than $20.⁶ The APR can’t be more than 28%.⁸
• A credit card, for a short time. In the second quarter of 2026, the average rate on bank credit cards that charged interest was 22.15%.⁹ That’s far less than a payday loan. But a balance you carry for months keeps growing.
• Someone you trust. Family or a friend may lend without interest. Think about how the loan could affect your relationship if paying it back gets hard.⁶ Agree on the amount and a payback date, and write them down.

Afterward, refill your cushion

Using savings for an emergency isn’t a failure. It’s what the money is for. The CFPB’s advice is simple: don’t be afraid to use it, and then work to build it back up.¹¹

Here’s one way to rebuild without feeling it. When a payment plan ends, keep making that payment, to yourself. Say you were paying $50 a paycheck. Move $50 to savings each payday instead. You’re already used to living without it.

Even a few hundred dollars saved makes a difference. People who have it tend to get through a hard month differently. Among adults who struggled to pay bills in the month before the 2025 survey, those who could cover $500 from savings were much less likely to borrow from friends or family. Only 11% did, compared with 27% of those who couldn’t cover $500.¹

Still, $500 won’t cover most big surprises. Take car repairs. In the 2025 survey, people told the Fed what a major car repair or replacement cost them. Only 12% paid less than $500. About two in three paid $1,000 or more.¹

So think of a few hundred dollars as a start, and keep going. Our guide to building an emergency fund walks through each step: $400, then $1,000, then a month of essentials, then three. To keep it growing, pay yourself first with a small automatic transfer, even $5 or $10 a week. And give the account a name that means something to you. The freedom fund has ideas.

A safety net doesn’t have to be huge to be powerful. It just has to be there when life shows up uninvited.

If a surprise has left you juggling bills or new debt, a volunteer adviser can help you decide what to tackle first, one-on-one and for free.