Important Bills to Avoid Putting on Autopay
Autopay is a convenient way to ensure your bills are paid on time without the hassle of manually processing each payment. While it’s beneficial for many recurring expenses, there are certain bills that you might want to avoid putting on autopay. This article highlights five types of bills you should consider paying manually to maintain better control over your finances and avoid potential issues.
Utility Bills
Utility bills, such as electricity, water, and gas, can fluctuate significantly based on your usage and seasonal changes. Here’s why you might want to avoid putting utility bills on autopay:
- Variable Amounts: Unlike fixed bills, utility bills can vary from month to month. Keeping an eye on these fluctuations helps you manage your budget more effectively.
- Billing Errors: Mistakes in utility bills are not uncommon. Manually reviewing your bill each month ensures that you catch any errors or overcharges before making a payment.
By paying your utility bills manually, you can monitor your usage, catch errors, and avoid unexpected charges.
Subscription Services
Subscription services, including streaming platforms, magazines, and memberships, are often set to auto-renew. However, it’s wise to pay these manually for the following reasons:
- Forgotten Subscriptions: Over time, you might forget about certain subscriptions you no longer use. Autopay can lead to paying for services you don’t need.
- Price Increases: Subscription services can increase their rates with little notice. By manually paying, you can decide whether to continue or cancel the service if the price goes up.
Manually reviewing your subscription services ensures you’re only paying for what you use and are aware of any changes in cost.
Credit Card Bills
While putting your credit card bill on autopay can prevent late fees, it’s important to consider the potential downsides:
- High Balances: If you have a high balance, autopay might not cover the full amount, leading to interest charges on the remaining balance.
- Overspending: Autopay can sometimes lead to less mindful spending, as you might not feel the immediate impact of your purchases.
To manage your credit card more effectively, consider setting up alerts for due dates and manually paying off the full balance each month.
Medical Bills
Medical bills can be complex and sometimes include unexpected or disputed charges. Here’s why it’s best to avoid autopay for medical expenses:
- Billing Errors: Medical bills can contain errors or charges for services you didn’t receive. Reviewing your bill before paying ensures accuracy.
- Payment Plans: You might need to set up a payment plan for large medical bills. Manually paying allows you to stay on top of the agreed-upon payments.
By manually paying medical bills, you can ensure the charges are correct and manage any payment plans effectively.
Variable Loan Payments
Loans with variable interest rates or amounts, such as adjustable-rate mortgages or some personal loans, can fluctuate over time. Consider these points:
- Changing Payment Amounts: Variable loans can have payment amounts that change periodically. Manually paying helps you stay aware of the current payment amount.
- Refinancing Opportunities: By keeping a close eye on your loan statements, you might identify opportunities to refinance or pay off the loan early.
Paying variable loan payments manually helps you stay informed about your debt and make strategic financial decisions.
Take Control
While autopay is a convenient tool for managing your finances, certain bills are better handled manually to maintain control and avoid potential pitfalls. Utility bills, subscription services, credit card bills, medical bills, and variable loan payments are all expenses that benefit from regular review and manual payment. By paying these bills manually, you can better monitor your spending, catch errors, and make informed financial decisions, ultimately leading to a more secure and efficient financial management strategy.
