Since you don’t think about these bills on a regular basis, you might not remember the next due date, especially if you don’t receive a reminder. Even if you’re an organized person with an outstanding memory and a knack for writing everything on the calendar, annual expenses can catch you off guard. If you have subscriptions or services that renew once a year, like a membership with Amazon Prime or Costco, don’t set up automatic payments for these expenses. Look: 15 Cities Where Houses Are Best Bargains Right Now This means you might not catch billing errors and will pay more than necessary.įind Out: Suze Orman Cautions Against Investing Emergency Funds in Two Common Places - Here’s Why Since autopay is a hands-off approach to paying bills, you’re also less likely to inspect your cellphone bill after setting up automatic payments. You could be caught off guard, or out of funds, if a payment posts when you weren’t expecting it. This doesn’t guarantee a consistent payment date each month. While you might have a set date - say the 15th - others have a monthly cycle which varies depending on the number of days in the month. 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.
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