Why You Should Think Twice About Autopaying These Bills

Technology has made our lives easier in many ways. One way it has made things more convenient is by allowing us to autopay our bills. No more worrying about accidentally missing deadlines or getting charged late fees! While autopaying bills may seem like an easy call, there are some cases where it may not be the best option.

Utility bills

Autopaying your utility bills -- like gas, water, and electricity -- can save you a lot of time and hassle. However, it may not always be the best option. When you autopay your utility bills, there is a chance that you may not be aware of any spikes in usage.

This can cause you to be unaware of how much you are really spending each month. Moreover, autopay can make it difficult to dispute incorrect charges, cancel services, or switch providers if you're not satisfied with the quality, price, or customer service you're receiving.

Take a second look at your bill before you pay to make sure you are not overpaying. Review your utility bills every month, track your usage, compare prices, and negotiate discounts or payment plans if necessary.

Subscription bills

Autopay can be a convenient way to enjoy your favorite streaming services, gym memberships, or magazine subscriptions without having to remember to pay every month. However, autopay can also lead to overspending, especially if you forget about your subscriptions.

Many companies offer free trials or discounts to new customers in hopes they sign up and forget about it, causing you to continually pay for services that you no longer use.

Additionally, autopay can make it difficult to cancel your subscriptions or dispute incorrect charges. Review your subscriptions and cancel or renegotiate the ones that don't meet your needs or expectations.

Credit card bills

Autopay can be a useful tool to avoid late fees, interest charges, or credit score drops if you forget to pay your credit card bill on time. However, autopay can also lead to overpaying, especially if you have a high credit limit, a low balance, or multiple credit cards with different due dates.

Autopay can make it harder to monitor your spending, detect fraudulent charges, or dispute billing errors. Some criminals charge small amounts on stolen credit cards, hoping it goes unnoticed.

Set up email or text alerts for transactions and due dates, monitor your balance and transactions regularly, and pay manually if you can afford to, or even pay weekly or biweekly to reduce your interest.

In addition, if you have a balance that you cannot pay off in full each month, autopaying a set amount instead of the full balance can be detrimental. It can cause you to rack up unnecessary fees and interest charges. Instead, make a habit of checking your account and then pay off any balance due in full.

If you don't have enough money in your account

But before you sign up for autopay on any bill, consider this: If you are living paycheck to paycheck, you can be hit with overdraft fees or late fees if you don't have sufficient funds in your account.

Before you make a payment such as rent or a car payment, make sure you have enough money in your checking account and double-check your payment schedule and amount, as well as your budget. Opting for autopay can be a useful tool for managing bills, but it shouldn't be used as an excuse to be careless with your personal finances.

Autopay can be an invaluable tool to save time and avoid penalties or fees. However, it's not a one-size-fits-all solution, and it has some risks and disadvantages that you should be aware of. By reviewing your bills every month, tracking your usage and spending, and negotiating payment options when needed, you can stay on top of your bills and avoid the pitfalls of autopay. Remember to balance convenience with control, and choose the best payment method for each bill based on your preferences, needs, and circumstances.