If you don’t properly manage your bills it can be very costly. There are a few simple steps you can take to stay organized and avoid being trapped by expensive fees or penalties.
Make a calendar. Add bill due dates to your everyday calendar. That way if a bill doesn’t show up in the mail for some reason, you’ll still know exactly when it needs to be paid.
Change your due dates. Take a good look at your calendar: Do you want payment dates spread out evenly, or would it be better for them to coincide? Once you decide, see if your creditors will change them accordingly—most credit card companies are happy to comply. (Please note, pushing the due date back a few days will result in a onetime adjustment to your next bill, because finance charges will continue to accrue.)
Sign up for auto–bill pay. You cam do this with your insurance premiums, utilities, mortgage, student loans, etc. You simply sign a document agreeing to have the payment deducted from your checking accounts. You still need to manage, check and verify that the amounts deducted are correct, but it is a good way to make sure your bills are paid on time. You’ll also save on postage, and you may get a lower interest rate on your student loan or mortgage (some creditors decrease interest rates if you agree to set up automatic payment).
Make your payments online. Instead of using a paper check, go online to your bank account and pay bills electronically. The money will be immediately deducted from your available balance. It’s neat and efficient.
Tags: credit cards, money management, mortgage, online banking, organization, reduced interest rates, student loans
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