Do I have to be in debt to have my bills consolidated?

Question

I have a lot of bills and I want to know if there is a way I can make one payment for all of my bills? I'm not in debt, I would just prefer to write out one check a month instead of 20.

Answer 1

If the bills are not from debt, what kind of bills are they? If you can get the billers to bill to a credit card, you could use that to 'consolidate' your bills.

Answer 2

It sounds like you need to pay recurring bills rather than debts. Contact each biller and have them take their payment directly from your checking account each month (also known as an ACH or electronic debit). You will probably need to fill out a form and mail it to the biller, but it will save you from writing and mailing checks every month (with 20 bills a month you could spend almost $100 / year in stamps alone). The biller will take the amount due on the date it comes due.

Some people are concerned about giving billers their bank account information (routing number and account number), but this same information is found at the bottom of every check you write. Besides, according the banking rules, you have up to 60 days to have your bank reverse any invalid debits.

You could also use online bill pay through your bank...it is usually free. Bills are paid electronically where possible and for smaller billers a check is printed and mailed by the bill payment service. You can even pay the piano teacher up the street with online bill pay. Please note that if the amount due changes every month (for example, electric bill) you will need to update the amount online each month.

I use these two methods (direct ACH debit and online bill pay) to pay all my monthly bills. It sure saves time and money. Of course, I still review our biller statements when they arrive along with my bank statement.

Good luck.

Answer 3

Don't write ANY checks. If your bank does not offer on-line bill payment, change banks. Most utility bills and the like are the same amount each month and are always due on the same day of the month. Your bank probably allows you to set up automatic payments for these bills so you don't even have to go on-line to pay them each time. Just review your bills regularly to be sure the amount has not changed. If the amounts vary, you may have the option of having them charge your checking account directly. As long as you keep enough money in your account, you don't have to do anything.

Answer 4

Well usually when people consolidate their bills it refers to loans, credit cards, or other outstanding debt. They take all of those bills and consolidate them into a single loan of usually lower interest and pay that bill. Helps save money.

If the bills you are refering to are the monthly bills like gas, electric, water, car insurance and so on, contact the company and see if they can set up an automatic withdrawal. They then take the money out of your checking account or charge to a credit card (not advised) on a specific date.

Answer 5

There's no particular reason to consolidate your bills. If it would make more sense and be easier, some people get a home equity loan so they can consolidate their bills and have just one monthly payment.