What Not to Put on Autopay (and What’s Actually Safe)
June 24, 2025
5 min read
Autopay is one of those financial hacks that sounds like it’ll change your life. And in some cases, it does. Bills get paid on time, your credit score quietly climbs, and you don’t have to think about due dates while juggling everything else on your plate. It’s like financial adulting on cruise control.
But here’s what no one tells you: autopay is not always your friend.
Some bills should absolutely be set to autopilot. But others? They require your full attention—because one overlooked charge or sneaky rate hike could wreck your budget in silence. I've seen it happen more than once—subscriptions you forgot existed, a utility overcharge you didn’t catch, or a credit card you meant to close that’s quietly draining your checking account.
Autopay isn’t about being lazy. It’s about being strategic.
Why Autopay Exists (And Where It Works Best)
Autopay was designed to make life easier—for you and the companies billing you. You get convenience and (usually) peace of mind. They get their money on time without chasing you.
And when used correctly, autopay does help:
- Protect your credit score
- Avoid late fees
- Maintain a consistent payment history
- Simplify your financial routine
But the “set it and forget it” approach can backfire—especially when prices go up or accounts get charged incorrectly. Autopay is not a substitute for financial awareness.
What Not to Autopay: The Bills That Bite Back
1. Credit Cards (Yes, Even the Good Ones)
It’s tempting to autopay your credit card minimum and forget about it—but that’s a slippery slope. If you’re only paying the minimum, interest builds. If you’re paying in full every month, you still want to see your statement before charges hit.
Set a calendar reminder two days before your due date to review your balance. Then make the payment manually or schedule a one-time payment. That way, you stay in control of spending.
If your credit card gets stolen, the autopay might keep charging interest on fraudulent purchases if you don’t catch and report them in time.
2. Utility Bills (They Fluctuate. A Lot.)
Gas, electric, and water bills can swing wildly depending on the season. Autopay means you might miss an abnormal spike, like the $400 electric bill that came after your AC ran nonstop in July. If you’re not watching, your account balance could take a hit without warning.
Set up alerts from your utility provider when your statement posts. Then review the charges and pay manually, or just approve a one-time payment each month.
3. Gym Memberships or Fitness Apps
Subscriptions tied to New Year’s resolutions (we see you, expensive gym memberships!) are among the most wasteful autopay charges. Life gets busy, and you may stop using the service, but forget the payment still runs.
If your gym membership comes with the "auto-renew" feature on overdrive, ditch autopay and manually renew it only if you're still attending sessions. Alternatively, look for month-to-month plans so you’re not locked in for the long haul.
Unless it’s something you use every single month, skip the autopay and give yourself a chance to review.
4. Streaming Services and Forgotten Subscriptions
Speaking of forgotten charges... streaming subscriptions can quietly snowball. What starts as Netflix and Spotify suddenly becomes Netflix, Spotify, Hulu, Apple TV+, and Disney+. Before you know it, you’re spending $100 a month just on entertainment.
According to CNET, the average American adult now spends about $90 a month on subscriptions—that’s $1,080 a year just on streaming, apps, and other recurring services.
Your move here? Run a subscription audit. Many budgeting apps spotlight recurring expenses so you can see what you're still paying for. Cancel what you truly don’t use, and leave the remaining subscriptions on manual payments to keep them top of mind.
What’s Actually Safe to Automate
1. Mortgage or Rent (If It’s Fixed)
If you’re paying a consistent mortgage every month, autopay can be a lifesaver. It ensures you don’t miss the biggest bill on your list. And for renters using a third-party platform with recurring rent charges, autopay avoids late fees—which can be hefty.
Always verify payment amounts annually during property tax and insurance adjustments, as escrow amounts can change.
2. Student Loans (Bonus: Some Offer Interest Discounts)
Federal student loan servicers often offer a 0.25% interest rate discount if you enroll in autopay. That might not sound like much, but over time, it adds up. Since these bills are consistent, you’re unlikely to be surprised by fluctuations.
3. Car Payments
Like student loans, these are typically fixed. If your payment is the same every month, go ahead and set it to autopay. Just make sure the funds are always available—missing a payment can hurt your credit and your ability to refinance later.
4. Insurance Premiums (Monthly or Semi-Annual)
Whether it's health, car, or home insurance, many providers also offer small discounts for setting up autopay. Plus, missing a payment on an insurance policy could lead to cancellation or coverage gaps—far more expensive than any late fee.
Use a secondary checking account just for autopays. Fund it with a lump sum each payday so your main account doesn’t get hit with surprises or overdraft charges.
What Happens When You Set Everything to Autopay?
It feels easy—until:
- Your paycheck is late, and autopay hits anyway.
- Your card expires or is compromised.
- You forget to update billing info and get hit with a late fee anyway.
- You stop checking bills altogether… and overcharges go unnoticed.
Autopay isn’t a system you “set and forget.” It’s one you set and review regularly. Even quarterly check-ins help.
Smart Habits to Pair with Autopay
If you're using autopay (and most of us are), stack these habits to stay in control:
- Weekly account check-ins. 10 minutes every Sunday can save you hundreds over the year.
- Calendar alerts before due dates. Even if autopay is on, see what’s coming out and when.
- Quarterly autopay audits. Review every auto-deducting bill. Cancel anything unused.
- Use a credit card—not a debit card—for autopay. Offers more protection against fraud and gives you time to dispute charges.
The Bottom Line
Autopay is a fantastic tool—when used thoughtfully. But like anything in personal finance, it’s not one-size-fits-all. The biggest danger isn’t the tech—it’s the temptation to check out.
By being intentional about which bills you automate and which you handle manually, you get the best of both worlds: ease, consistency, and control.
So go ahead—put your mortgage or student loans on autopilot. But keep your hands on the wheel when it comes to subscriptions, credit cards, and anything that fluctuates. That balance? That’s what turns autopay from a risk into a smart money move.
