Tips to Make Paying Bills Easier

There’s a good chance that you have several bills to pay each month. From your rent or mortgage and car payment to your credit card and phone, it can sometimes be challenging to stay on top of them all. Fortunately, there are plenty of ways you can ensure all your bills get paid on time, every time. Below, we’ll share a number of tips that will simplify the bill-paying process and give you some much-needed peace of mind.

There are a number of strategies that can help you pay your bills on time and avoid late fees and potential credit issues that often come with missed or late payments. Here’s a look at a few tips for paying bills on time each month:

• Organize Bills by Due Dates
  Start by making a list of all your monthly bills and their due dates. If you notice that your due dates are scattered throughout the month, you may want to change them. Fortunately, many creditors will let you choose or modify your due dates without the hassle. You can go online or call customer service to find out whether this is an option.¹ If all your bills are due by the 5th of every month, for example, you’ll find it much easier to pay them.

• Set Up Automatic Payments
  With autopay, you can pay your bills automatically at the same time each month. You may be able to sign up for autopay through your creditors or banking institution, or in some cases, you can log onto your service provider or lender’s website, create an account, and set up automatic payments through there. Once you do, the funds will usually come directly out of your checking account.²

• Keep On Top of Bills to Ensure Payment
  It’s in your best interest to set recurring bill payment reminders on your mobile phone or online calendar. After you enroll in autopay, it may be tempting to forget about your bills, however, it’s still important to stay on top of things and make sure your bills are getting paid. Setting reminders can notify you when each bill is due so you can check your bank account and make sure there’s enough money to cover them and to ensure that the payments go through.³

• Creating a Budget for Bill Payments
  It’s up to you to make sure you have enough money to pay your bills each month. That’s where having a monthly budget comes in. A budget is a spending plan based on your income and expenses. As long as you stick to it, it will help you cover your essential bills as well as the bills that fluctuate each month like credit cards.

• Have a Plan for Unexpected Expenses or Financial Challenges
  The reality is that unforeseen expenses can pop up when you least expect them and interfere with your ability to pay your bills on time. With an emergency fund in place, you’ll have the funds to cover financial surprises and won’t have to worry about missed or late bill payments. It’s advisable to save at least three to six months’ worth of expenses.⁴

There are a number of benefits to paying bills on time each month. Here are several of the benefits you’ll enjoy if you commit to timely bill payments:

• Avoid Late Fees
  Many lenders charge late fees to customers who don’t pay their bills by the due date. By paying your bills on time, you can forgo late fees and keep more of your hard-earned money in your pocket. Keep in mind that some lenders may have a grace period before they charge a late fee, but this isn’t always the case.⁵

• Avoid Interest (Or Keep Interest Rates Low)
  Some companies will charge you interest as a penalty for late payments. For debt repayments, your interest rate may increase if you’re late. Check your credit card and loan agreement terms and conditions to determine how late payments may impact your interest rate.

• Potentially Improve Your Credit Score
  Payment history typically accounts for a significant part of your credit score. Paying some bills late could negatively impact your credit. Late payments on credit cards and certain loans, for example, can take a toll on your credit and position you as a riskier borrower.⁶ This, in turn, may impact your ability to get certain credit products in the future.