Some cellphone plans also don’t have the same billing date each month. And if you forget to read your cellphone statement in months where you owe more than usual, the extra funds taken from your bank account could trigger an overdraft and bank fees. The problem, however, is the amount you owe can change from month to month, depending on data usage. There’s also the option of setting up automatic payments for a non-unlimited cellphone plan. If you have an unlimited cellphone plan and your bill never varies, autopay is a time-saving strategy for managing payments. Before you get excited and put your entire financial life on autopilot, here are several bills you should never put on autopay. This isn’t the case with monthly expenses that fluctuate. You know what to expect from these bills, so it’s easier to plan and budget for automatic drafts. Alternately, if your income fluctuates, you may not reliably have the money to pay it, which will overdraw your account and mean more fees on top of the negative balance you already have to contend with.”Īutopay is ideal for payments that are the same every month, such as your mortgage and car payments. Even for those who can afford it, if you’re being billed for something you no longer need, you may not notice if it’s automatic. But convenience can also make it a curse for many reasons. “If you have the money in your account reliably, you just set it and forget it. “Automatic bill pay is, for many, a lifesaving convenience,” said Carter Seuthe, CEO of Credit Summit. But, while automatic payments can save time and streamline your personal finances, it isn’t the right choice for every expense. Putting your bills on autopay can ensure never forgetting a due date, which minimizes the risk of late fees and dings on your credit report. We can all use a simpler, more efficient way to manage expenses and save money.
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