Bill shock – it sounds like the name of somebody you might know. In many ways, it could be: a certain Mr. William Shock, who regularly delivers terrible news about your household expenses.
Unfortunately, you can’t just tell bill shock to go away. Unless you make changes to your lifestyle, it’s here to stay. What’s more, bill shock can adversely affect your enjoyment of your home. You want to live in a place that respects your finances. You don’t want to spend every waking hour working just trying to keep your household running. That’s a massive drain on your time and resources. It’s not right.
Let’s take a look at what bill shock is and why you might be experiencing it more often than you’d like.
What Is Bill Shock?
Bill shock is that sinking feeling that you get when you open a letter from a utility provider only to discover that you’ve spent way more than you thought. In your head, for instance, you might have believed that your electricity bill was going to come in at around $100, but the reality is that it is more like $300 for the month. That’s way over budget!
Why Bill Shock Is On The Rise
Unfortunately, bill shock is on the rise. People sign up for monthly plans and then forget about their day-to-day use of resources. Meanwhile, the utility provider – whoever that happens to be – is keeping stock of usage meticulously, adding up all the expenses.
Here are some of the reasons that bill shock happens:
- Monthly payment plans. People who go on monthly payment plans are at the highest risk of bill shock. Why? Because they’re not keeping track of the amount of money that they’re spending every day. Those on monthly energy plans, for instance, are much more likely to outspend those using prepaid electricity. When you use the former, you’re not directly aware of the money you’re spending, whereas, with the latter, you are.
- Failing to set limits. Utility providers don’t automatically set limits on your resource usage to keep bills down. Instead, they’ll keep racking up the expenses and, often, won’t even warn you that you’ve gone over budget. That’s why it is so important to set limits. If you have to pay extra for additional data on your phone or the internet, find ways to monitor usage. Ask your carrier not to add extra fees to your bills if you happen to go over your allowance.
- Falling foul of hidden fees. Utilities will often quote you a basic monthly rate, but rarely does this also include additional fees. Home insurance providers, for instance, might charge extra if they detect that you’ve done something to put your home at higher risk. Likewise, energy companies might make you pay more for using electricity during certain parts of the day.
Bill shock is on the rise for several reasons. Some of them are under your control, but not all. It is essential to be wise to your spending so that you don’t wind up in a financial panic at the end of the month.
