Financial Literacy: Bills

Sometimes in America, when you buy things with cash, you don't have to worry about paying later. But sometimes, you'll get something called a bill. A bill is like a letter that comes in the mail telling you that you need to pay a certain amount of money.

For example, if you go to the doctor or the hospital, you might not have to pay right away. But later on, a bill will arrive in the mail asking you to pay for the visit. The same thing might happen if you use electricity, water, the Internet, or a phone. You'll get bills for those things too.

When you get a bill, you have to pay it. That's the most important rule. If you don't pay it on time, they might start adding extra money that you have to pay. This makes the bill even bigger. If you still don't pay, they might send the bill to a special group of people called a "collection agency." They might send you letters or even come to your house to ask for the money.

If things get really bad and you still can't pay, it could go to court, and you might have to give away your things or even go to jail. But don't worry too much. There are things you can do if you can't pay a bill.

First, talk to the people who sent you the bill as soon as you get it. This i especially important with medical bills because they can be very expensive. Ask if they can lower the bill or make a plan for you to pay a little bit each month.

But be careful with payment plans. Make sure to ask how much you have to pay each month and for how many months. Use a calculator to make sure you're not paying much more than the original bill.

If you have questions, it's okay to ask. And whatever you do, don't ignore the bill and hope it goes away. It won't.