Does Paying Your Bills on Auto Pay Make Your Financial Situation Better or Worse?
Almost every Pennsylvanian has experienced a multilevel marketing (MLM) sales pitch. An acquaintance that you see regularly or a former classmate or coworker you have not heard from in a long time invites you to a social gathering or one-on-one coffee date. First she tries to convince you to buy overpriced vitamin supplements or shower gel, and out of politeness, you buy one of the mediocre products your acquaintance is offering for sale. Your acquaintance is not satisfied. At that meeting, or perhaps in follow up conversations over text message or on Facebook, she relentlessly tries to persuade you to get a steady stream of the overpriced products shipped to you, and that you let her charge your debit card each month on auto pay. She assures you that, if you don’t need that many vitamins, selling the extras will be easier than, say, only buying one bottle and not reordering the vitamins unless and until your first bottle runs out. Not all companies use auto pay as a cash grab as shamelessly as MLM operations do, but sometimes it helps to be intentional about your spending each month instead of just letting the recurring charges take big bites out of your budget each month. If automatically recurring charges to your debit card are making your financial situation worse, contact a Philadelphia debt relief lawyer.
When Your Bills Are Not on Auto Pay, You Must Think About Them Every Month
Many vendors offer the option of automatically debiting monthly payments from your bank account or credit card. You might even have auto pay set up on some of the following common household bills:
- Utilities, such as electricity and water
- Cable or Internet
- Subscription services
- Gym memberships
- Loan payments, such as home mortgages or car loans
The good news about setting up bill payments on auto pay is that you never have to worry about your payments being late because, on the due date and the days leading up to it, you were too busy to log into the payment website and make a payment. The bad news is that, by keeping your bills on auto pay, you miss out on the intentionality of frugal spending. By paying each bill individually each month, you get to review each statement carefully for incorrect charges. In the case of subscriptions, you also have time to think about whether it is worthwhile to continue paying for another month. With loan payments, you can think about whether you can afford to pay a few dollars extra toward the principal balance this month. Not keeping your bills on auto pay is a way of spending additional time in order to save money.
Contact CONSUMERLAWPA.com About Debts That Pile Up Despite Auto Pay
A Philadelphia consumer law attorney can help you if you are struggling with debts, despite paying most of your bills on auto pay. Contact at CONSUMERLAWPA.com to set up a free, confidential consultation.
Source:
msn.com/en-us/money/personalfinance/10-bills-you-should-never-put-on-autopay-and-why-it-s-risky/ss-AA1tTcga?ocid=msedgntp&pc=ACTS&cvid=727fff69fe65492498ce1ff885c8016e&ei=22#image=2
