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Get organized and pay your bills on time

September 15, 2008

It is very important to pay your bills on time for a variety of reasons. Likewise, there are a variety of reasons why someone may not pay their bills on time.

One reason some people are late with their bills has nothing to do with a lack of money and everything to do with a lack of organization or motivation.

Everyone is so busy these days that it’s easy to let things fall through the cracks. You may have the best intentions of paying your electric bill by the due date … until something else pops up. Suddenly the electric bill is the last thing on your mind.

One way to make sure you pay your bills on time is to make a calendar that lists the due dates of all of your bills. Then, set aside a time each week to pay your bills. If you can block off just 15 minutes each week, it should be enough to take care of everything.

Another way to ensure your bills are paid on time is to set up automatic bill payment via the Internet. You can do this one of two ways: through your bank or through your creditors.

Many banks have an on-line bill payment feature that allows you to have a payment automatically sent to your creditor each month. This works best for accounts that have a fixed payment, such as school or car loans. Payments that vary from month to month, like utility bills, can still be made online, but you will have to enter in a payment amount each month.

You can also allow your creditors to make an automatic withdrawal (known as an ACH debit) from your checking account each month. This is an easy and convenient way to make sure your bills are paid without a lot of hassle.

There are still some things to be very careful about when it comes to on-line bill paying.

First, it is imperative to make sure that you have the money in your checking account to cover automatic withdrawals. It could spell financial disaster if creditors are trying to withdraw money that is not there.

Second, it is important to monitor your account to make sure the proper amount of money has been withdrawn if you give your creditor the option to automatically withdraw money. If an error is made, you’ll need to notify your bank and the creditor immediately.

Another pitfall can occur if you use a credit card or debit card to automatically pay a bill. You have to remember to update information if an account number or expiration date changes.

Here’s an example: Last week I drove through a toll booth in

Pennsylvania. I have

E-Z

Pass, but when I went through the gate I noticed the light was yellow (signaling a low balance on my account). It occurred to me a short time later that I have my account automatically renewed through my debit card, which was lost several weeks ago. I had not entered my new card information for my

E-Z

Pass account.

This could easily happen with other bills, so make certain you keep all of your account information updated.

With a little organization and account monitoring, you can change your bill paying habits. Paying on time will help boost your credit score, stop you from incurring late payments and make you a more attractive customer to lenders.

Written by admin · Filed Under Misc. 

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