Am I the only one here to read this and think "get rid of the iPhone if paying the bill puts you in financial hardship"? I realize that people can get behind on bills, everybody has been there, no shame what-so-ever. I have been in situations where I couldnt afford something, so I didnt buy it. My wife and I both have iphones, expensive internet/tv package, buy expensive "toys" for ourselves. If it came to the point that we couldnt afford something, we would re-evaluate or finances and make the adjustments. I do love having an iphone, but it certainly is not worth the thought of damaging my credit rating, or having service shut off for non-payment.
I am not meaning to sound holier than thou, just seeing lots of advice of "call att and explain the situation" so my advice is "call att and move to an affordable phone".