Auto bill payments can save you from cluttered inbox trays, forgotten payments and their associated fees and the annoyance of jumping online to pay bills every month. But auto pay doesn’t mean auto pilot. Blindly paying out money without keeping aware of it’s outgoing is unwise so we advocate budgeting for your usual phone and utilities payments and setting up a system that filters out your bill money when it arrives into your account.
Maintain financial authority
Most banks have auto pay systems that you can set up via internet banking along with service providers have their own version of a direct deposit system where by you can give them your banking details for them to draw an agreed amount of money from your account each pay cycle.
We don’t recommend setting up a payment schedule with a service provider where they take the full bill payment directly out of your account when the bill is due. This open wallet policy is not a good one for disputes regarding bill fees or charges and it can be hard to get money back when they’ve already snagged it. Taking large chunks of money out of your account for payments like electricity can tip the balance when you also have other bills to pay but the money is already gone. It can be worse if you have overdrawn your account.
It is much better to set it up directly from your own account. It lowers the risk and you have full control over your auto pay. Investigate options for setting up the minimum payments on auto pay, such as credit cards, can mean avoiding accruing late fees and interest charges from forgetfulness. You can also opt into text reminders for due payments if your memory is a little taxed and you have a balance to make up after all your auto pays are tallied.
Just as you wouldn’t have a snooze while you’re driving on cruise control, you wouldn’t stop keeping track of your finances when you choose to use the auto pay option. You still need to track your money and make sure you’re keeping on budget. Try this option for at least six months and decide for yourself if its beneficial for your finances.
If you’re facing financial hardship we are here to talk about a solution. Call us on 1300 887 211 or Book a Free No Obligation Phone Consultation with our friendly team and we can discuss debt management options specially focused on your personal situation.