Autopay Pitfalls: Which Bills Should You Avoid?
April 11, 2023
7 min read
In today's modern world, a multitude of online platforms provides the convenience and ease of setting up autopay for bills. While auto-paying monthly bill payments can offer an effective solution to ensure timely payments and reduce user effort, there are specific bills that you should manually check and pay rather than put on autopay.
To prevent financial mismanagement and ensure responsible use of your resources, let's discuss which bills should NOT be put on autopay.
Top 10 Bills You Should Never Set on Autopay
With so many payments in our lives, it can be easy to set up autopay and forget about them. But there are important bills that require regular monitoring—here's a list of the top ten you shouldn't miss!
1. Mortgage or Rent Payments
Your home is not only where you live but also a significant financial investment. Paying your mortgage or rent payments manually each month ensures that you are always aware of your home ownership or tenancy status.
When you set your mortgage or rent payments on autopay, you may miss important payment amounts or due date changes. If there is an error in the amount deducted, it may be challenging to recover the funds and affect your credit score.
2. Credit Card Payments
Your credit score is the gateway to accessing a multitude of financial opportunities—like loans, mortgages, and even credit cards. But missing payments can really put a dent in your chances of getting approved for these things down the line.
Reviewing your credit card statements regularly boosts your wallet's security and helps you stay ahead of the game. With manual monitoring, it will be much easier to identify and address any fraudulent activity swiftly—all while boosting that coveted credit score even further.
3. Utility Bills
Utility bills are recurring expenses that are often taken for granted. By setting them on autopay, it can be easy to forget how much you're spending on utilities, and you may miss the opportunity to conserve energy and save money.
When you pay your utility bills manually, you become more aware of your energy usage, which can help you identify ways to reduce your energy consumption and lower your utility bills.
4. Insurance Premiums
Insuring your home, car, and health is like having a shield around you—shielding you from life's unexpected moments. Manually tracking your insurance premiums ensures that the coverage protecting this valuable asset of yours won't break the bank!
Insurance premiums can be costly, and they often increase without warning. You can uncover any changes in your coverage, billing amounts, or any hidden fees just by manually reviewing your insurance statements.
5. Medical Bills
Medical bills can be complicated and overwhelming, with various procedures, medications, and hospital stays charges. Monitoring your medical bills allows you to ensure that you're only paying for the services you receive and avoid any errors or overcharges.
Manually reviewing your medical bills allows you to cross-check them with your medical records, detect any inconsistencies, and work with your healthcare provider to secure better rates or flexible payment arrangements if required.
6. Subscription Services
Subscription services are a convenient part of modern life, but they can add up quickly and become a financial burden if left unchecked. Reviewing and canceling subscriptions you no longer use manually can help you cut unnecessary expenses and avoid hidden fees or automatic renewals.
Additionally, you can identify any hidden fees or automatic renewals that can be challenging to detect, ensuring that you're only paying for the services you want and need.
7. Gym Memberships
Working out is essential for a happy and healthy life, but it can come with an expensive membership price tag. Don't let hidden fees take away the value of your gym subscription!
By staying on top of payment details manually, you'll be able to spot any unnecessary costs or charges that may have gone unnoticed—ensuring maximum savings from every workout session. Exercise smarter and get more bang for your buck by keeping track of those payments today!
8. Student Loans
Student loan debt is a significant financial challenge for many people, and it can be difficult to navigate the complex payment systems and avoid any fees or penalties. Taking a hands-on approach to monitoring your student loan payments can help you regain control of your debt and make sure that you're paying the right amount every month.
One of the benefits of monitoring your student loan payments manually is that it allows you to identify any mistakes or discrepancies in your billing. Student loan providers can make errors, such as charging you the wrong interest rate or adding fees that you don't owe.
9. Car Payments
Your car is more than just a ride—it's a symbol of independence and freedom. It takes you to work, family gatherings, and exciting adventures. It's vital to keep up with your car payments to ensure that you can keep driving it and enjoy your daily life.
Keeping a close eye on your car payments can help you steer clear of errors or changes in interest rates that may result in unanticipated expenses and even jeopardize your ownership of the vehicle.
10. Tax Payments
Tax payments are critical to managing your finances, and ensuring that they're accurate is essential. Tax laws and deductions are continually changing, and this makes it crucial to monitor your tax payments manually instead of relying on autopay.
Why These Bills Should Not Be on Autopay?
Autopay is a convenient option that allows you to automatically make payments on bills without having to manually initiate each payment. While this can help you save time and avoid late fees, some bills should not be set on autopay.
One of the primary reasons is the importance of monitoring payments for errors or fraud. By manually reviewing your bills each month, you can detect any discrepancies or fraudulent charges and take the necessary steps to resolve them. Failure to do so can result in overpayments, and you could end up paying for services or products you didn't receive.
Another reason why bills should not be set on autopay is that it's essential to be aware of any changes in payment amounts or due dates. With statements like credit cards or utility bills, these amounts can fluctuate based on usage, promotions, or interest rates.
Through the convenience of autopay, there is an overlooked risk—if you're not careful and don't track your payments regularly, it can result in overdraft fees that could leave a dent in your bank account.
Taking a few moments to actively monitor finances each month will ensure there are ample funds available when making any payment so as to sidestep additional charges down the line.
Alternatives to Autopay for These Bills
While autopay is a convenient option for some bills, there are alternatives that may be better suited for bills that should not be set on autopay. Here are some other options to consider:
1. Setting up reminders to manually make payments
If you're worried about forgetting to make payments on time, setting up reminders can be an effective alternative to autopay. You can use a calendar or reminder app to schedule reminders for payment due dates and avoid any late payment fees.
2. Creating a budget and schedule for paying bills
A budget can help you stay on top of your bills and ensure that you have enough funds to cover them each month. You can create a payment schedule to track payment due dates and ensure that you make payments on time.
3. Enrolling in email or text alerts for payment due dates
Many service providers offer email or text alerts for payment due dates. This allows you to stay informed about when payments are due and avoid any late payment fees.
4. Using online bill pay
Many banks offer online bill pay services that allow you to make payments manually but still provide the convenience of automatic payment. You can set up payments for specific dates, and the bank will make the payment for you, ensuring that you don't miss a payment.
5. Manually paying bills using a mobile app
Some service providers have mobile apps that allow you to make payments manually. This option provides the convenience of paying bills on the go while still allowing you to maintain control over your expenses.
Avoid Autopay Pitfalls
Take charge of your money and set yourself up for success! When it comes to bills, don't just leave things on autopay. Be mindful about where you're spending your hard-earned cash; a little more effort can save you from any unwanted surprises or fines. Plus, staying informed help put you in control so that financial stability is within reach—go after those goals!
