THE IMPORTANCE OF AUTOMATING BILL PAYMENTS

THE IMPORTANCE OF AUTOMATING BILL PAYMENTS

Do you ever get frustrated whenever that due date is coming, and you completely forget about it? We all know that paying late payment dues is a waste of money!

AUTOMATION

All the emerging modern technology, applications, automated software makes life easier. Automated bill payment is one of the hundred greatest outcomes of modern science and technology. Automating bill payments can help save time, reduce stress, and improve overall financial health.

Putting finances on autopilot is an excellent approach to keep track of monthly obligations and savings, and eventually plan for the future.

Setting up automatic bill payments reduces the likelihood of missed payments and incurring a late charge, as well as removing or at least reducing any anxiety felt about the overall financial status. The primary advantage is that it frees up energy and concentration to make more money, save more money, or BOTH!

Moreover, it saves time and effort going to the bank or other Institutions to settle bills every month. We are all busy with our jobs and making an extra effort to run errands can be a bit of a hassle. But with an app or software installed, and a click of the button from the comfort of your home any time, “VIOLA!” All those payments are taken care of!

However, there are downsides to using automated bills payment software and apps.

OVERDRAFT FEES 

A larger than expected bill or accidental over-charge could cause an avalanche of overdraft fees if it causes other payments to overdraw your account. When the median overdraft fee is $34, those charges add up fast. This is why it is important to keep a cushion in the account and monitor it daily.  Also, you still need to check your balance regularly to make sure you have enough funds to cover any upcoming charges.

SAVINGS ACCOUNTS

Do not automatically pay bills with a savings account. A federal rule by the Federal Reserve Board known as Regulation D limits the number of withdrawals per month from a savings account to SIX. Go over that limit and your bank or credit union could charge a fee, close the account, or convert it into a checking account.

CREDIT CARDS

On the other hand, it might be safer and easier to responsibly use a credit card. Credit cards have better consumer protections than debit cards or electronic transfers from a bank account. In case of unauthorized charges or over-billing, a dispute ban be instantly issued online, and you will not be out of any money while the credit card company investigates.

[BLOG LINK] Safe and Responsible Credit Card Usage

[BLOG LINK] Create a Budget

[BLOG LINK] How to Forecast using Quicken.