Is automatic bill pay a good way to pay your monthly bills?

Question

Actually, I am asking for my sister who is just starting out. I have never and will never pay bills this way because I am stuck in my ways. However, my sister is scatter brained. Is it a good idea for somebody like her to have the bank pay bills automacially each month?

Answer 1

Granny not only do I recommend automatic bill pay, I use it for everything that I can, I also recommend that she go to her local utility companies and see if they have a level bill pay program available. She may not qualify for this until after she has had utilities in her name for a year or more but it is nice to know exactly how much money is being taken out of your account every month for gas, electric, etc. I like the automatic bill pay because I travel extensively and may or may not be home for weeks at a time. Don't want to come home and find the electricity off because of non-payment.

Answer 2

There are two ways to look at this - the first is that a fixed amount is taken every month ( repayment of a loan for example ) and the other is payment for services, such as cellular etc. For the former I prefer ECS and the latter I would rather make the payment only on receipt of the bill as I have found to my dismay a lot of money has gone off as I never read my bills in detail and even if I did - the bank would have already released the money before the bill actually came to me.

Answer 3

Hi,
Auto billl pay advantages:
1. Hassle-free. Don't have to think about paying before due date and fines etc. This way you also save money you would have spent for fines.
2. Convenient
Disadvantages:
1. You eventually stop keeping track of how much money is being taken away every month. That way if you lose money if there is overbilling.

Remedies:
1. Subsrcribe to auto bill pay, but insist that they send you a paper statement every month detailing the itemized expenses.
2. Make sure you will read the bills for accuracy before shredding them.
3. Do not subscribe to this feature from non-reputable dealers. In such cases, have a Yahoo! Calendar remind you every month you are supposed to pay the bill, and pay it manually.

Answer 4

i think if she is just starting out then you will get over excited and spend all your money. but if she has a steady income then it would be a good idea because she wont have to worry about paying that bill every month.

Answer 5

It's good if your sister is forgetful or just lazy to bust out a check. It can be bad, though, because if you don't have enough funds in your checking account, it can cause problems. If she can budget her money well, then it's worth the time to use an auto plan.

Answer 6

if she can be sure she has got the money in the bank.. or.. if she works and got direct deposit.. and on the day of deposits bills r paid out.. could be helpful for her to do bill pay..

Answer 7

im like you id rather go pay in cash so i can see exactly whats goin on and that the exact amount is given no more. so personally no i dont think so. but its a trust thing i guess

Answer 8

Yes. She will not have to look for a mail box, pay for postage, or worry about missing a payment.

Answer 9

The company's website (manually) is what I use the most. The companies that don't have websites I send checks to them. Don't like to use checks because the postage needed to send the check to the company is getting more expensive every year.

Answer 10

if ur just starting out, it may not be such a good idea...u'll have better control over ur funds if payments are manual rather than autopay..