If you’re struggling to keep up with overdue bills, you’re not alone. Rising interest rates, inflation, and the high cost of living have made it harder than ever for Canadians to stay on top of their finances. When bills start piling up, it’s easy to feel overwhelmed or even ashamed – but the most important thing to know is that there is help available.
At Spergel, we’ve been helping Canadians get out of debt for over 35 years. And as a proudly Canadian firm, we understand the unique pressures and policies that affect people here – because we live and work here too. If you’re facing overdue bills, here are our top recommendations on handling the situation.
First: Know the warning signs
Before overdue bills turn into collections or legal action like a wage garnishment, there are usually some clear red flags:
- You’re juggling which bills to pay this month.
- You’re relying on credit cards, lines of credit, or payday loans to cover basic expenses.
- You’ve received late notices, disconnect warnings, or collection calls.
- You’re losing sleep over money, facing financial stress, or avoiding looking at your bank account.
If any of this sounds familiar, take heart. There are clear steps you can take to regain control.
Step 1: Take a clear look at your finances
It might feel uncomfortable at first, but the best way to start is by understanding exactly where you stand. List all your sources of income and all your monthly expenses, including:
- Rent or mortgage
- Utilities and phone bills
- Groceries
- Minimum payments on credit cards and loans
- Childcare, transport, or healthcare costs
Once you have everything down, you’ll be better positioned to decide what to do next.
Step 2: Prioritise the essentials
When money is tight, it’s crucial to prioritise the bills that keep you safe, secure, and housed. These usually include:
- Rent or mortgage
- Utilities
- Groceries
- Transportation to work
Credit card payments, unsecured loans, and subscriptions can come second. Missing a credit card payment may affect your credit score, but missing rent or hydro can affect your wellbeing.
Step 3: Communicate with your creditors
It may feel daunting, but contacting your creditors can actually help. Many utility companies, lenders, and service providers have financial hardship programs that may include:
- Payment deferrals
- Lower minimum payments
- Interest reductions
- More flexible due dates
Be honest and upfront about your situation. You don’t have to go into personal details, but let them know you’re facing financial hardship and ask about available options.
Step 4: Avoid high interest “quick fixes”
In times of stress, it’s tempting to take out payday loans or new credit cards to cover overdue bills. But these can dig the hole deeper – especially when you’re dealing with interest rates north of 400% in some cases. Instead, speak with a Licensed Insolvency Trustee (LIT). As Canada’s only federally regulated debt professionals, LITs are the only professionals able to legally reduce or eliminate your debt through formal solutions like consumer proposals or bankruptcy. And here’s the good news: getting advice from a LIT won’t cost you a thing.
Step 5: Talk to a Licensed Insolvency Trustee (that’s us)
At Spergel, we know that falling behind on bills isn’t a reflection of your character – it’s a symptom of a system that’s increasingly stacked against average Canadians. We’ve helped thousands of people across the country get the fresh start they deserve, with:
- FREE, judgment-free consultations
- Tailored debt relief solutions based on your situation
- A local team that truly understands the Canadian landscape
And unlike firms that outsource your case or treat you like a number, we offer a more human approach. When you file with Spergel, you get your own dedicated Licensed Insolvency Trustee from day one. No hand-offs. No call centre runaround. Just real help.
Overdue bills: FAQs
Here are some of the most common questions we receive about overdue bills:
What is an overdue bill?
An overdue bill is a payment that hasn’t been made by its due date. This can include anything from credit card payments and utility bills to rent or loan instalments. When a bill is overdue, you may face late fees, interest charges, service interruptions, or even collection action if it remains unpaid.
Do overdue bills affect credit score?
Yes, overdue bills can affect your credit score – especially if the payment is more than 30 days late and gets reported to a credit bureau. Missed payments can stay on your credit report for up to six years, making it harder to qualify for loans, mortgages, or even rental agreements. The longer a bill remains unpaid, the greater the potential impact on your credit.
How do you catch up on overdue bills?
To catch up on overdue bills, start by reviewing all your outstanding balances and prioritizing essential expenses like rent, utilities, and food. Create a realistic budget to see where you can cut back and redirect funds. Contact creditors to explain your situation – they may offer payment plans, interest relief, or temporary deferrals. Avoid taking on high-interest debt to cover bills, and consider speaking with a Licensed Insolvency Trustee for professional help if you’re feeling overwhelmed.
Why ‘Proudly Canadian’ matters
In a time when many Canadians are watching our neighbours to the south with unease – from economic instability to political gridlock – it’s worth remembering that here in Canada, we do things differently. We believe in dignity. In second chances. In support systems that are designed to help people, not punish them. At Spergel, we’ve been a part of that support system for over 35 years. We’re not a US company with a Canadian office. We’re homegrown. And we’re here for you.
Overdue bills can happen to anyone. But with the right help, they don’t have to define your future. Whether you’re barely keeping up or already behind, speak with one of our Licensed Insolvency Trustees today. A confidential, no-obligation consultation can help you understand your options – and take the first step toward financial peace of mind.
