 TITLE: How to Split Bills With Roommates CONTENT: Bill-Splitting Pitfalls to Avoid\n--------------------------------\nOnce your bill-sharing plan is set up, make sure it stays on track by watching for common pitfalls and being prepared to avoid them.\n*   **Running out of money**: You owe $1,000 for rent, but only have $1.29 in your bank account. Creating a budget for yourself can help prevent this predicament and is a smart move whether or not you've got roommates.\n*   **Irresponsible roommates**: If you don't know a potential roommate well, go over their financial situation with them before they move in. You can't check a roommate's credit, but you could ask them to show you a copy of one of their credit reports, which they can access at AnnualCreditReport.com. You can also ask to see pay stubs, W-2 tax forms or bank statements to verify their income and see if they can afford the rent.\n*   **Unexpected expenses**: When a party gets out of control or a pet has an accident, you may need to pay for repairs or cleanup. Consider setting up a group emergency fund for such situations; while you're at it, start building your own emergency fund.\n*   **Overpaying or underpaying**: It's easy to lose track of who paid what and when, especially if recurring amounts are similar each month. Keeping on top of your paper- or app-based tracking system will help.\n*   **Lending your roommates money**: If a roommate can't make a payment one month, should you cover them? Frequently spotting a roommate for bills could lead to resentment and leave you short of funds. Emergency funds and roommate agreements can help prevent this.\n*   **Late payments**: Late payments can lead to late fees or utilities being shut off. Prevent late payments by collecting money from your roommates well before bills are due so delays caused by bank holds or weekends won't prevent you from paying. Missing a payment due date can also damage the credit score of the roommate whose name is on the bill if the account is sent to collections. Most landlords don't report rent payments to credit bureaus, but late payments can negatively affect your rental history, which landlords check via a tenant screening report when reviewing your rental application. END