7 Tips for Better Bill Paying
Photo by Katia Gelman
Nobody likes paying bills. We dread our due dates and hate watching our money disappear. Like it or not, we still have to pay for our monthly services. Rent, credit cards, utilities and cable are just a few bills we face, but with some planning and the help of these tips, paying your bills can be much easier and result in better credit, and a stronger financial footing.
Pay bills well before they are due.
In order to deal with monthly bills, some people choose to make their payments on time or even pay them some time in advance so that they are able to budget smartly before the other monthly bills arrive.
Set all your bills to be due on the same day.
To avoid or minimize neglecting your bills you may want to try setting up some kind of file with specific due dates to organize your bills. Next, select a day out of the week where you sit down at your computer and verify which payments are due next and write a check or submit your payment online. If you have multiple bills from the same company, try to consolidate them into one bill for the month.
If you can, pay all your bills online.
Paying bills online is a great way to keep on top of your bills at all times. Many everyday utilities, credit cards, and other financial matters can be paid for online. Besides the convenience of paying bills online with a couple clicks of the mouse, not accruing late fees is an added perk. Paying bills online has helped many Americans to stay on top of their bills and keep their finances on track.
Have multiple credit cards? Pay more on the high interest card.
When you are juggling credit card bills and trying to pay down debt. The advice is typically to pay down the higher interest rate card first. Another strategy is to find a card with a lower interest rate and transfer your balance to save money. However, you are usually charged a transfer fee that is about 3% of the amount or a value not to exceed $50 to $75.
Use checks to give yourself an extra day or two.
The advantage of making payments with a check is that you can make a payment before you have the funds in your account. This makes our lives a little easier when we need to make a due date but do not have the cash on hand. Be careful, though, to get the money to cover the bill in your account before the check clears, or your check will bounce and you will have even more fees to deal with.
If you’re going to be late on rent, work with your landlord.
If you know that you will have trouble making rent, the best thing to do is to go to your landlord and work out a payment plan. Instead of ignoring the problem, be proactive in dealing with the issue. Late rent can affect your credit rating and eventually make it much more difficult to obtain good housing when you need it. Most landlords will be willing to work with you on a short-term basis.
Going to miss a payment? Don’t panic!
Stay calm and consider your options. There are always ways to get the money you need on time. Try asking your friends and family to advance you the cash for the month. This can be embarrassing, and a hit to your pride, but it’s better than a hit to your credit score. If that falls through, you may want to think about the possibility of taking out a payday loan. Paycheck advances are short-term loans you can quickly pay off. They are specially designed to help in extreme cases where you need to make small payments or emergencies where you need of cash overnight. These loans can help you out of a tight spot, but should only be used if absolutely necessary. Companies like National Payday can help you out when the going gets tough.
