How to Pay Your Bills on Time
With as many bills as the average household has, it can be hard to get everything paid on time. From credit card statements, to the car payment, mortgage and rent, and various other utility bills and more, getting every bill in on or before it's due date can sometimes be a struggle. But it is important to get your bills paid on time for many reasons.
Late payments can quickly ruin your credit score. Even a day over a due date can reflect on your credit history negatively, and the more it happens, the worse your score can drop. A bad credit history can mean trouble with getting a loan for a mortgage or vehicle, as well as for signing up for credit cards.
Additionally, you can have problems getting utilities turned on if you move and have to switch companies, and they see that you have a bad score, or that you were late on other utility payments. So for this reason and more, paying your bills on time is important. There are steps to take to get your bills paid on time, every time.
Bill Paying Tips
Designate an area to pay your bills at, and to keep your bills together. Purchase a bin to put bills in when they arrive in the mail. They should then be categorized in the order in which they are due.
Set aside two folders to put your bills in, the first for bills that are due the beginning of the month, and the other for the end of the month. With your bills, keep all important items that you will need to pay them. This includes envelopes, stamps, pens, your checkbook, debit cards, calculator and anything else you will need. Do not allow your bills to get scattered all over and lost, which can then cause missed due dates.
Keep track of the due dates of every bill you have. This can be done on a special calendar that you keep near your desk just for bills, or even in a notebook. If you have too many bills due at once, you may have problems getting them paid on time.
If
this is the case, call and talk to the companies about revising your due
dates. Many companies will allow you to change your due date one time, so
that you have more flexibility in paying your bills. Organize your due dates
as well as you can to fit your specific schedule.
For example, if you get paid once per month, you may want to have all your bills due close to that time, so you are obligated to pay them when you get your check. If you think you are not going to be able to make a certain payment, you may be able to defer the payment for a few days or more, without penalties, if you speak to the company. Do this before you allow the bill to become overdue, to avoid late charges.
Online Bill Payments
Take advantage of the computer, as well as automatic bill payments, to get your bills paid on time. Many companies nowadays allow their customers to set up an automatic bill payment plan, which allows them to access your bank account or debit card, and will take the money out on the same day each month for the bill. You can do this with many accounts, such as your car payment, utility bills and more.
Once the account is set up, you will not have to do anything else, just wait for the payment to be taken out. Most companies will also send out a reminder e-mail so you know the money is about to be withdrawn, so that you can make sure the cash will be there. You may want to talk to your bank and set up an over-draft account on the account that will be used to make automatic payments.
If there is not enough in the account to cover the withdrawal, the bank will then move funds from another one of your accounts to cover the bill, which avoids overdraft fees and non-sufficient funds fees from the company trying to collect it's payment.
Internet Bill Pay Services
Another option to make sure that you pay your bills on time is to use the Internet to pay them. Many companies allow you to set up an account so that you can simply log-on, enter your payment from your debit or credit card, or from your checking account, and pay your bill. The payments usually go through immediately or within hours, so as long as you pay on or the day before your due date, the payment will be made on time.
File all payments and receipts that you have from your bills in a folder and keep them handy. In case you have a problem with a company, such as them saying that you never made a payment, you will have the proof that you did on hand. Make a note on your calendar or in your book as to when you paid the bill, how much and on what date.
If you do pay your bills by mail, make sure you send them in with plenty of time to make it. Mail the payment at least 7 to 10 days before the due date. You want to give the post office plenty of time to get the piece to the accounting department of the company, and to leave room for any delays that may occur.
This is especially important around holidays, as the mail can be somewhat on a slower schedule. You must also allow for ample time for the company to process the check or money order. After you have filled out the bills to be mailed, set them with your purse, wallet or car keys so that you don't forget it when you walk out the door.
Avoid late charges, shut-offs, penalties and lower credit scores by paying your bills on time. With patience and a good system, you can get all your bills paid before or when they are due.