Should you put your bills on autopay?

The answer to this question is different for everyone. If you are someone who gets paid every couple of weeks and has more bills due at the beginning of the month than the end of the month, then you might not want to put your bills on autopay if you are paying directly out of your checking account and might overdraft. If you are living paycheck to paycheck, make sure that you have a budget and are saving a little bit each month so that you have a buffer in your account to avoid overdraft fees. If you get paid in the middle of the month, you must remind yourself of the bills that will be due at the end of the month or the beginning of the next month so that you do not overspend and find yourself in a situation where you don’t have enough money to pay your bills on time and have to pay them late when you get paid next. This begins a vicious cycle where much of your next paycheck is already earmarked for bills that are past due, and interest and late fees will add up so much that you will hardly have anything left for expenses like food and gas after your other past due bills have been paid.

On the other hand, if you often forget to pay your bills on time and incur late fees, it may be better for you to set your bills to autopay to avoid late fees. You should add a note to your calendar on the bill’s due date so that you can check to see if the charge has been deducted from your account to make sure that it is paid on time. You will have to make sure that you pay close attention for 1 or 2 months after you set up autopay. Sometimes the autopay won’t go into effect until the next month and you will have to pay the bill the first month like you usually do. You should only use this method if you have some extra money in your account so that you know you will always have enough money to cover bills that are charged to your account at different times of the month.

One downside to autopay is that you may forget about subscriptions and other things that you have paid for. Every 6 months, go through your autopay monthly charges to make sure you are still using those services, such as Netflix, magazine subscriptions, and gym memberships. There maybe be some things that you can cut out to save some money.

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