Paying bills on time can be a challenging part of our hurry and rush lives. Despite our best intentions due dates get away from us and we are left with late fees, and perhaps even damaged credit. You can get on track for timeliness with a small investment of time and a few supplies.
One of the biggest keys to timely bill payment is attitude and organization. Your attitude is often what shapes your experience. If you regard bill payment as a dreaded chore you are more likely to procrastinate. Try to think of bill payment as a privilege. We must pay for the conveniences and services that make our lives more comfortable and pleasant. If you dread the chore because your outgo exceeds your income make the changes you need to bring your budget into a better balance. Sometimes it could be as simple as cutting back or asking for a due date that is more comfortable for you.
Organization is key
Organization is an important component for developing positive bill paying habits. You need not be compulsive to be organization. Your system may be as simple as purchasing a monthly accordion file in which you store bills, checks, stamps and envelopes. You'll have everything you need in one place when you sit down once or twice each month to pay your bills. Want to make the system even simpler? Try online banking with a bill payment feature.
Paying bills online can mean paying bills on time
Most credit unions and other financial institutions offer web-based services that allow you to monitor your income and expenses. A wonderful bonus of this benefit is online bill payments. Take just twenty or thirty minutes to enter information about your creditors, such as addresses and account numbers, and you're ready to go. Your bills are paid with a quick point and click. Payments are generally received within 2 – 5 days (no licking or stamping required).
Many credit unions also offer the option of online bill receipt, which means everything you need is right on your computer and there are no bills to misplace. Online banking and bill payment services also offer a convenient way to track your payment history. Online statements are often available for 12 to 18 months.
Automatic payments
If your bills and income are relatively stable you may want to consider automatic payments. There are two options for this easy way to pay bills on time.
- Schedule automatic payments with your credit union. After you have set up your online bill payment vendor list you will have the option of scheduling regular or one-time payments. When you schedule regular payments your bills are paid on time each month with no further action from you.
- Schedule automatic payments with the vendor. You can arrange to have your mortgage company make an automatic deduction of your payment from the account of your choosing each month.
There are a few considerations with automatic payments; the first is stability. If your income varies and the electric bill is alternately high and low you may want to opt for online rather than automatic payments. Computers do not consider your income they simply make payments as scheduled. If your income varies you may find that you do not have enough to meet your budget on the months when bills are high or you may even find yourself faced with overdraft fees.
Another consideration is recourse in the matter of disputes. Are financially able to wait for a refund or bill adjustment in the event that you are billed incorrectly?
Paying bills on time is an important part of managing your finances well. This simple action makes you more appealing to creditors and saves you money (i.e. lower interest rates, no late fees, etc.) in the long run. Start today by gathering all of your bills. Whether you elect to pay by mail or online there is a system that will work for you. Don't be afraid to tweak it until you get it just right. When you pay bills on time you are making a valuable investment in your financial future.
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