As our society gets busier, it’s been increasingly important to automate several aspects of our lives. One of the first areas to be automated was the payment of monthly bills and for many, this is an essential system that helps them avoid late payments. However, there are a few dangers that are associated with auto bill pay programs that should be discussed. By keeping these points in mind, you can use auto bill pay options to your advantage, without having to worry about additional problems.
Auto Bill Payment Programs - are they for you?
The first major concern is a lack of funds. If you don’t have a reliable income that is always deposited on time, you can end up with late bills, angry creditors and a real problem on your hand. If you are using a checking account for your auto bill pay, it is vital to make a note of when your payments are due and then take the necessary steps to ensure that you will have more than enough to take care of the bills that you owe for that month. This is also a problem for those using a credit card, especially if they get too close to their limit.
Next up, there is a big concern over hidden fees and charges that you may not catch. If you don’t get paper bills, or if you don’t take the time to read your electronic statement, you may end up paying too much and you’ll never be the wiser. The best example in this case would be a phone bill that does not have a set amount for long distance. This can fluctuate from month to month and if you’re not paying attention, you can easily end up with a bill that is three times the norm or more, and you’ll have to come up with the difference to make sure your other bills are paid.
Other companies may tack on extra fees, or you may be charged for each transaction. Always take the time to read the fine print before getting involved with auto bill pay systems and make sure that you are completely aware of what you’ll end up paying every month by keeping tabs on your statement.
The last major problem facing users of auto bill pay programs is security. It is vital to go with a program that provides top notch security and data protection. You don’t need that payment information being broadcast across the net, and all too often, this can happen. Hackers are an issue, especially now that so much sensitive information is available. If you are not sure about the level of security for the auto bill payment service that you are using, it is best to find a service that you can trust.
Auto bill pay can be incredibly helpful, but as with most things in life, there is a downside. However, by keeping these points in mind and by staying diligent on reading your statements, you can make it work for you.
Photo Credits: 1
Originally posted 2008-10-29 06:55:32. Republished by Blog Post Promoter
Related Articles -
4 Tips for College Students Budgets /caption] If you are a college student, then your primary focus is probably set on your studies and trying to maintain your education so that you will be benefited in the future. Unfortunately, one of the things that you may not be putting enough consideration into is how you are...... -
Tips for College Student Budgets /caption] Trying to make ends meet when you are in college is not an easy task. Your income is usually pretty limited and expenses can be high, even if you have a scholarship. If you’re trying to save money or just get by, there are some great tips for college...... -
Traditional Magazines vs. Online Magazines /caption] While many people subscribe to a variety of financially-oriented magazines to keep abreast of the latest economic happenings, others find that online finance magazines are a great way to stay up-to-date on the latest financial news, all with just a click of the mouse. Online finance magazines have advantages...... -
3 Ways to Increase Your Cash Flow If you’re finding it difficult to get by, one of the easiest ways to combat this issue is by increasing your monthly cash flow. While you may not be able to make a huge difference right away, slowly building up the amount of money that you have coming in, building...... -
To Borrow or Not to Borrow against a 401K Question - Because of the credit crunch, is this a good time to consider borrowing against a 401(k) savings as a means of paying off other loans? My current 401(k) planning investment return is 5 percent, and the interest I will be paying on it is 9 percent. [/caption] Answer......
Related Sites -
Joint Banking, Budgets, and Savings Joint budgeting has been a topic for the past few weeks on some personal finances sites. Several bloggers have been posting their financial maps. Personal Finance Hour had a great show on couples and finances with Jim and J.D sharing their differing opinions on how they handle their family's finances....... -
Check Your Bills For Inaccuracies Consumers often take for granted that the amount listed on their utility and other bills is accurate. In an economy where every dollar counts it is imperative that you get in the habit of checking each account statement carefully to ensure you are not paying more than you should be...... -
When Automating Your Finances May Not Pay Many financial experts agree that automating your payments, bank deposits, and investments makes great financial sense, it isn't always the case with all of your bills. Of course, the theory behind it that what you don't touch you can't spend. While in theory, that theory makes sense. You can certainly...... -
Money for Life By Steven B. Smith This is a unique book that many readers will find very worthwhile. Unlike many financial books, it uses a third person fictional narrative to get the point across in the first portion of the book. You’ll be reading about a fictional couple as they attempt to (mis)manage their finances and...... - The Most Important Economic Initiative for the Middle Class? Personal Finance Education This is the Mr. ToughMoneyLove contribution to the synchroblog project in which nine personal finance bloggers are simultaneously answering this question: What is the most important initiative that the next administration should undertake to improve the economic health of the U.S. middle class? The concept that permeates all aspects of the......