First of all, paying bills on time is important because you should keep the commitments you make, but it’s also important because it can save you a lot of money in the long run. Paying your bills on time means you won’t have to pay late fees, and it helps you protect your credit score. Late payments could result in a lower score, which could mean higher interest rates and fewer lending options. Paying bills on time doesn’t have to be hard. Use the following tips to avoid making late payments – and the associated fees:
1. Sign Up For Automatic Billing
Whenever possible, set up automatic billing so you never have to worry about making payments on time. After you’ve set things up, the payment will just be taken care of automatically. Be sure to write down the dates of these automatic payments so you aren’t surprised when $100 simply disappears from your checking account.
2. Organize Your Bills And Keep Detailed Records
It’s difficult to pay your bills on time if you don’t know where they are. Set aside a specific spot in your home for unpaid bills and other financial records. Use a specific drawer of your filing cabinet, a box with slots that sits on your desk, or an expanding file folder that stays in your desk drawer. Instead of setting your mail down on your kitchen counter or leaving it in your car, immediately take out the bills and put them in their designated spot. Move them and update your records after you’ve made a payment.
Keep a list of all the payments you need to make each month, how much those payments are and when they’re due. Check off items on the list as you make payments so you know which ones are taken care of, and don’t forget to start over each month. There are numerous mobile phone apps that can simply this process.
3. Set Aside Time To Pay Bills and Review Your Budget
Choose a specific day once or twice a month to pay your bills and review your budget. This will help you catch any mistakes before too much time has passed, and it will give you a chance to evaluate your finances and make changes if needed.
4. Set Up Automatic Reminders
Put due dates into your calendar or a reminder app on your phone. Some places even let you sign up for email or text message reminders. Choose a method that works for you so you don’t have to worry about forgetting a due date.
5. Reduce The Number Of Payments You Have To Make
The fewer payments you have to keep track of, the easier it will be to remember them. Pay off the debts you can and eliminate memberships that you don’t use. You could also consult a credit repair company. Credit repair companies can help you improve your credit score by working to consolidate your debt, negotiate with creditors, improve your understanding of your finances, and repair errors on your credit report.
Paying bills on time will give you peace of mind and protect your credit.