Don’t Use Credit Cards to Pay Your Energy Bills. Do This Instead (2025)

With temperatures soaring across the country, your energy bill is likely scaling to new heights. If you can’t afford your bill this month, a credit card may seem like a smart idea. Why not earn credit card rewards and avoid having your electricity shut off, right?

It’s a sticky situation many of us are dealing with. An exclusive CNET Money survey found that 78% of US adults are concerned about their home energy bills this summer, and 32% are using financing options like credit cards or payment assistance programs to cover the costs.

The downside to paying expensive energy bills with a credit card can be costly. Some utility providers charge a convenience fee -- either a flat rate or a percentage of the bill -- when you pay your bill with a credit card. Not only could this wipe out any rewards you’d earn, but if you’re leaning on credit to pay your bill, the financial consequences can get even more severe.

“This will become a vicious cycle, and you will end up racking up a lot of interest,” said Alaina Fingal, a CNET Money expert and owner of The Organized Money.

If you find yourself routinely using credit to cover utility bills, it’s time to seek out alternatives that won’t take such a heavy toll on your finances.

Alternative ways to pay for energy bills

If energy bills are stretching your budget past the breaking point every month, consider the following strategies to help cover costs.

Sign up for budget billing

Budget billing, sometimes called level billing, is an option offered by many utility companies to help make your energy bill more predictable.

Instead of paying for the amount of energy you use each month, which can vary widely depending on the season, you’ll pay a set amount based on your average energy usage. For example, if your winter bills tend to be lower and then skyrocket in the summer when you crank up the air conditioning, budget billing can help level out these payments throughout the year. Your utility will determine the amount by reviewing your power bills from the past year or two.

Set up a payment plan with your utility company

If you’re usually able to pay your utility bills but you just can’t afford this month’s, reach out to your utility company. Most can work out a payment plan that lets you spread out the payments over time.

Just be sure that you contact your provider before the bill is due to avoid late fees and interest charges for missed payments.

Use a budgeting app to plan for costs

Your energy bills can fluctuate depending on the season, but it’s possible to estimate those costs and build them into your monthly budget accordingly. If you’re struggling to do that, it might be time to consider a budget app.

The best budgeting apps can help you track expenses, spot spending trends and even schedule utility payments. Some banks have simplified budgeting features built into their apps.

Check out energy assistance programs

If the costs to heat or cool your home are routinely more than your budget can handle, you may want to explore local or federal energy assistance programs, such as the Low Income Home Energy Assistance Program or the Weatherization Assistance Program.

LIHEAP is a federal program that provides funds to families to help with home energy bills, weatherization and energy-related home repairs. The Weatherization Assistance Program specifically works to reduce the costs of upgrades to make homes safer and more energy efficient.

Some states or cities also have their own energy assistance programs. You can find local programs through the LIHEAP site or contact your utility company for more information.

“Most utility companies have some form or help if you are in dire need,” Fingal said. “Utility companies are also able to give bill extensions. You may be able to postpone payments for up to a month.”

How to spend less on electric

Electric bills are a financial pain point for many households in the US, but electricity rates can vary widely from state to state. For instance, Connecticut electric bills average over $200 a month while Utah’s average electric bill comes in at a relatively affordable $75 per month.

Fortunately, no matter your electric rate, there are some tried and true ways to reduce your energy costs:

• Ask your power company for an energy audit. Many will conduct a free audit to identify places in your home where energy is being wasted.
• Adjust your thermostat and water heater. Keeping your house a few degrees warmer in the summer and colder in the winter for a few hours every day can help you save on energy costs. Using a smart thermostat can make it easier for you.
• Perform routine maintenance on your home’s heating and cooling system. Regularly changing your air filters can help maximize your HVAC’s efficiency.
• Unplug unused devices. This simple task can potentially net you up to $100 per year in savings according to the US Department of Energy.

The editorial content on this page is based solely on objective, independent assessments by our writers and is not influenced by advertising or partnerships. It has not been provided or commissioned by any third party. However, we may receive compensation when you click on links to products or services offered by our partners.