The Best Ways to Pay Bills and Save Some Money!

Struggling to pay bills? A short term loan may be the right solution for a one-off situation. But, if this keeps happening, it’s time to make some changes. Here are seven different ways of making sure those bills get paid – and maybe even save you some money in the process!

Mistakes People Make When They Pay Bills

Bills are just one of those things which you can’t escape from, and one of the many aspects of personal finances that it’s important to manage properly. When it comes to potentially complex topics like this, a lot of people will look to simplify it all. However, this is often easier said than done when it comes to paying our bills. Automation only really works if you’ve got a lot of money in the bank. And, can keep tabs on any additional purchases so that you don’t overspend. A lot of establishments still won’t even accept automated online billing.

Countless people like you want a simpler way to pay bills but end up making it harder for themselves. Here are seven mistakes we often make when we pay bills, and how to turn them around to save you money instead.

Let’s begin with the first mistake!

You’ve probably heard that you should keep a designated place for your bills at least once before, yet this is one good habit which countless people manage to neglect. Having a place for your bills is often easier said than done at this point. With so many companies coaxing their customers towards online billing, it’s pretty common for people to find themselves having to sort through masses of emails and traditional paper bills just to keep track of what they owe.

So how do you keep track if you pay bills online?

You may need to sort your bills into two places; one for digital bills and one for snail mail. Alternatively, you could scan the bills that get delivered to your door or print your digital ones. However, this can become pretty tiresome for anyone who isn’t all that tech-savvy. The point is, at any given time, you should know where all of your important financial documents are, including bills. Establish some financial centre in your home, whether that’s a spare room or simply a folder somewhere in a drawer.

If you know you’re behind on your bills, it can often be tempting to put off opening them, whether they’re in the form of emails or regular mail. The task of looking at your credit card bill each month is never pleasant, and this can also drop to the bottom of your “to-do” list pretty easily. While it’s never fun, it’s important not to put off the routine of opening your bills and reading them through.

Online banking means you can make the payments from your PC or smart phone and avoid using up precious free time going to the bank or post office to make the payments. It also means that there is no costly travelling to town or paying parking fees or fines. Using technology to pay bills on time is on the rise, and if you have a computer, you can use it to make bill paying a simple task.

Why you should open your bills right away

There could be something pretty significant in there, such as a change in the billing process or some late fee that you weren’t aware of. On the other hand, bills can occasionally contain more pleasant news as well. For example, you may have mistakenly paid your physician too much, and find a juicy refund cheque inside. True, it can feel better to put off looking at your bills and going by in blissful ignorance, but this won’t help you get a firm handle on your personal finances, and can often exacerbate an already bad situation. As soon as you receive a bill, place it somewhere where you’re going to see it often and be reminded to open it or set a prompt on your computer or phone for digital ones.

Whether it’s monthly, weekly or even daily if you’ve got a lot of bills which you can’t pay in advance, you should be giving yourself regular times to pay bills. Talk to any experienced financial advisor, and they’ll tell you it’s essential to reserve a little window for paying your recurring bills. While different living situations will require you to think about different bills, most people can get by setting aside just an hour a week to catch up on their personal finances.

How to tackle your bills

Start with the type of bills that are usually the biggest headache, and the chore will feel a lot more downhill. Have two folders which you can utilise in that hour, one for the bills you haven’t paid, and one for the ones that you have. It may also be worth dividing these folders up into different headings so that you can access them easily whenever you need to. Getting into this kind of rigid schedule can be tough at first, but once it becomes the routine, you’ll be very glad you did it!

If you’re not exactly the techiest person in the world, then you may be a little suspicious of using any online services to deal with your bills. However, by going a bit more high-tech than an accordion file under your desk, you can make it much easier to organise and pay bills, and ensure that no important details slip through the net.

Apps can do so much!

There are a lot of practical bill-organising programs, both online and as downloadable apps, which allow you to monitor your bank accounts, credit card accounts and even link up to your creditors and automate payments. If your balance gets dangerously low on any of your accounts and a bill is on the horizon, you’ll get a little notification buzzing your phone. This can be a huge help in stopping you from needing a cash advance to afford the bills. There are also handy features that allow you to draft a calendar for organising payments, and seeing where your money has been going in the past and where it’s going to go in the coming weeks.

Just remember that this is a big industry. There are all kinds of features and programs, some of them more helpful than others. The good news is that a lot of them are free, or you can at least try them for free. Check out your options now!

The whole idea of pre-paying any of your bills may seem a little odd, but making a point to pay over your monthly balance is a great way to shave down the amount of interest you’re paying on your loans and any other debts, increasing your overall net worth. This, in turn, will help you to pay down your debt much faster, and bring you that much closer to long-term financial stability. Though it may seem like you’re just adding unnecessary hassle, it’s certainly worth looking into how pre-paying your bills can benefit you, and seriously considering it if your personal cash flow allows it.

Using the Direct Debit Option

Most of the large utility companies will offer a discount on the units of energy used if you pay by direct debit. Additionally, as long as there is enough money in your account, you can be sure that the bills will be paid on time. Paying by direct debit also means that there are no large bills during the winter months when fuel costs can rocket. The amount paid every month is always the same.This makes it easier to budget. You will not incur any expensive charges for late payments. You will also avoid the risk of having the electricity, gas, and water or telephone line cut off.

Paying on time also prevents the account from building up to a large amount that you may find more difficult to clear. When an outstanding amount is owed one month, and is carried over, it can quickly increase to a sum that seems extremely high when added to the next month’s payment. This can be a very daunting prospect if you are on a fixed income, and can quickly lead to a build-up of arrears every month.

Benefits of pre-paying your bills:

• You’ll save money on the interest
• You will reduce the amount you owe in debts
• You’ll get a considerable discount on your yearly rate
• This will act as a small cash cushion to help you through any financial setback
• Your recurring bills will be more organised, helping to streamline your bill-paying process
• None of your payments will be late
• This will free up more of your money in the long run
• Maintains a good credit score

When you get a little windfall in the form of a tax rebate or a bonus from your work, it can be tempting to spend it immediately on some of life’s luxuries. However, if you can grit your teeth and make an extra payment, you’ll be much better off in the long run. The tougher things are right now, the easier they’ll be once your personal finances are nice and streamlined.

Credit Ratings, Credit Scores and Online Loans

Making sure that your bills are paid on time also helps to give your credit rating or credit score a boost. This can be useful in the future, if you want to apply for a mortgage or a loan to make a large purchase. A bad credit rating can have a great impact on the life of you and your family. Some jobs that are on offer demand that employees are fully creditworthy. These include any jobs associated with handling money such as a cashier or a salesperson who handles sensitive material like finance documents. In addition, if you are applying to rent a home, a bad credit rating can prevent you being able to get the apartment or house of your choice.

A good credit rating also means you can access lower rates for loans and credit cards. Every time you make a late payment for bills, it is noted down with the credit reference agencies. These are the agencies that are consulted when you apply to rent a house or flat, and when you apply for any kind of loan. Mobile phone providers also consult credit agencies like Experian and Equifax who will provide details of any late payments. The company will then demand more expensive rates for phone contracts than those asked for from good payers. Your credit rating is routinely used to assess the likelihood of default on all kinds of financial products, so paying your bills on time is an important aspect of creating an excellent creditworthy reputation.

Why you should pay off debts with a high interest rate first

For many people, paying off the highest interest rates they have hanging over their head is a no-brainer, and they quickly develop this into a habit which keeps them out of financial trouble for many years. However, many people don’t realise or don’t care about how beneficial it is to focus on their highest interest rates first.

It’s very important to prioritise your debts. By having a higher interest rate, more of your money is going into the bank’s pocket, instead of the main balance of the loan. This, in turn, means that you’ll be in debt for longer. All those big financial goals you’re sitting on will take a very long time to become a reality. While you’re reorganising your bills, be sure to set up a system so that you’re paying the highest interest rate on any of your loans or cards first. Then, tackle the others with a vengeance! When you prioritise your outstanding payments like this, things will start to feel more downhill and manageable much sooner.

Aside from your new system for paying bills and a solid debt-repayment strategy, you should be finding out about the promotional offers. Find out what is available to you and use them wisely. Promotional offers such as balance transfers, 90 days same as cash and low-interest rates are all incredibly useful tools which you can use to your advantage. Balance transfers, for example, will allow you to pay less interest on your credit cards, thereby saving you money, and getting you out of debt much faster. Just remember that making the jump may not always be worth the trouble, depending on the nuances of the deal and any extra fees tied to it. Always do the maths before you go ahead with clutching at offers.

Generally, though, you’ll make it much easier for yourself to pay bills and rub out debt by taking advantage of some of the promotional offers that are available.

Stop Procrastinating, Start Paying Your Bills Effectively Today!

We’ve given you a lot of information and advice about paying your bills in an organised manner, never being late and often saving yourself money. Now, it’s up to you!