Go Automatic! Make automatic bill pay your best friend. Have you ever said to yourself, “I thought that I made that payment”? You will never have to be tempted not to pay your bills on time or miss a payment. Enrolling for automatic payments through bill pay could work for you. Before you say no, do a little research and explore the bill pay options with your bank or credit union, utility bills, cell phone carriers etc. Automatic bill pay is in and has been for some time. Yes, it is a very popular way to ensure that while you are away on vacation, traveling for work or dealing with sickness or any other life event that could cause you to lose track of due dates and payment amounts. Going automatic ensures that all of your obligations are met and you get to save on buying stamps. There are pros and cons for “Going Automatic”:
Pros:
Avoid late charges – Late charges vary from creditor, to financial institution or other utility companies. Some late charges could be from $25.00 to a certain percentage of your balance.
Increase your credit scores – Paying your bills on time stabilizes and increases your credit score. Approximately 34% of your credit score consists of your payment history. When you pay on time your score soars.
Avoid disconnect notices – Never worry about disconnects or late notices showing up in your mailbox.
Cons:
You will probably feel out of control – When you are used to paying manually online or from an app on your cell phone. It is possible that you will have a little anxiety about relinquishing control. Work on that….
Insufficient Funds – You could accumulate insufficient funds fees if you are not the type that balances your checkbook. Avoid depending only on online views of your checking accounts or other accounts that offer automatic bill pay options. Change old habits and embrace something “New” and work with it until you are effective.
Expired debit cards – Remember to update your accounts that are enrolled on automatic payment/direct pay, with your new debit card information to avoid cancellations and late charges.
Try “Going Automatic”, if you are discipline enough to ensure that the funds are in your account to meet your obligations as promised.
Your comments are encouraged and welcome! E-mail me at christineroebuck@livemylifedebtfree.com.