Paying your bills on time is not always the easiest thing. In the current economic crisis some find themselves in a financial crunch. There are, however, many important reasons to make sure you do not fall behind and there are a few tips to help you through the process.
Why Should I Pay My Bills On Time
One thing you to keep in mind if you are not paying your bills on time is that that it can have a very negative impact on your credit score. A good, or decent, credit score is essential if you ever want to buy a house or take out a hefty loan. It’s crucial to protect your credit score at all costs which means keeping up with your credit card payments and other bills.
Something else you may want to consider when thinking about postponing paying your bills on time is the fact that you may incur a major late fee. Obviously each company’s late fee varies, but they can rack up daily, weekly, or monthly. Sometimes the late fee is so high in order to scare people into paying their bills on time or even early. I remember I missed an electric bill one month, due to an emergency I had to take care of with my car breaking down. By the time I was able to afford to pay off the bill, the late fees had already accumulated to almost twice as much as the original cost. It is scary how falling behind, even slightly, can really do some financial damage.
How to Pay Your Bills On Time?
So, how do you keep up paying your bills on time? That is a great question, but it really all depends on you. If you are an organized person, keeping a bill portfolio can help. Get a filing box and create an independent section for each bill. This ensures that you never accidentally forget one and that you keep them all together in one safe place.
You should also try to always pay your bill the day that it arrives in the mail or in your email inbox. It makes it very easy because it will be fresh in your mind instead of piled under more mail as the days go by. If any company offers it, auto-pay is another great option. It is less stress for you, but you have to make sure the money is available in your account. You don’t want to have to pay fees due to overdrafts or bounced checks. For companies that do not offer this auto-pay option, you can simply mark your calendar for the dates the bill is due. I use the calendar on my phone and set a reminder so it rings at the designated time.
Paying your bills on time does not have to be scary. You simply need to be organized, set friendly reminders, and try avoiding procrastinating. Anyone with the right determination can accomplish it.