Important: 9 Bills You Should Never Put On Automatic Payment For Any Reason

The 9 bills you should never put on autopay

9 Bills You Should Never Put On Autopay

“9 Bills you should never put on autopay”
Everyone might benefit from a more straightforward method of budgeting and money management. By setting up autopay for your bills, you can reduce your risk of missing a due date and incurring late fees as well as damage to your credit score. However, even while they might streamline your personal finances and save you time, automated payments aren’t always the best option.

The 9 Bills You Should Never Put On Autopay To Save Money

For payments that don’t change every month, like your mortgage and car payments, autopay is excellent. It is simpler to plan for and create a budget for automatic drafts because you know what to anticipate from these bills each month. With variable monthly expenses, this isn’t the case. Here are some 9 bills you should never set up for autopay before you get too excited and put your entire financial life on autopilot.

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Nine Bills Not To Be Set Up For Automatic Payment

1. Cell Phone Bill

One of the crucial 9 bills you should never put on autopay. If you have an unlimited mobile plan and your bill never changes, setting up autopay can help you manage your payments more quickly. A non-unlimited mobile plan can also have its payments set up automatically. The issue is that, depending on your data usage, the amount you owe can vary from month to month. Additionally, the extra money deducted from your bank account could result in an overdraft and bank fees if you neglect to examine your mobile bill in months when you owe more than normal.

Additionally, the billing date for some cellular plans varies from month to month. Others have a monthly cycle that changes depending on the amount of days in the month, while you can have a specific date, like the 15th. That doesn’t ensure a regular payment date each month, and if a payment posts earlier than expected, you might not be prepared and run out of money.

After setting up automatic payments, you’re also less inclined to check your telephone account because autopay is a hands-off method of paying bills. This implies that you run the risk of overlooking billing mistakes and overpaying.

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2. Electricity/Utilities Bill

Your water, gas, and electric bills will fluctuate each month unless you’re enrolled in a budget plan through your utility provider, which allows you to pay a certain amount each month. Therefore, it’s generally safer to avoid automating utility bill payments.

Each month, you must log in to your accounts in order to start one-time payments. You’re more likely to study statements in this situation before sending in a payment. Additionally, it’s simpler to spot odd price rises when you periodically monitor your statements.

A water leak in your home, for instance, can be indicated by an increased water bill. A leak could go undetected for months and cause significant damage to your home—and your wallet—if you set up auto-draft for this bill and never check your statements.

3. Gym Membership Subscription

One of the crucial 9 bills you should never put on autopay is gym membership. You may get in shape and shed extra pounds with the aid of a gym subscription. However, you might suffer greater losses.

It’s a good idea to set the monthly membership price on autopay if you plan to go the gym frequently. However, despite your best intentions, you might actually spend a lot less time at the gym than you had planned, to the point where it is no longer worthwhile to pay for a membership.

Some invoices go out of sight and out of mind with autopay. As a result, there is a chance that you will overlook funds that are being taken out of your account. Or, you can get stuck paying for a membership you never use since you’ve grown accustomed to paying certain fees.

In contrast, if you pay monthly, you’re more likely to periodically review your gym use and terminate your membership if you’re not utilizing it.

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4. Satellite And Cable Service

If you view a lot of movies on demand, your cable and satellite fees may fluctuate. You might never keep track of how much you spend on supplemental services if your cable payment is automatically deducted from your bank account.

Additionally, it seems like cable and satellite providers raise their prices every year and charge extra for extra services you don’t need, such regional sports networks. You have the opportunity to examine your account for price hikes and all the alternatives you might not be using while paying the traditional way, by check or by making a one-time payment online.

You may also find out when all of those promotional offers you signed up for have expired by checking your cable or satellite account. It might also inspire you to get in touch with the business and request to renegotiate your services.

5. Video Streaming Services

The flexibility of streaming services like Netflix and Hulu allows you to view whatever you want, whenever you want. But before registering for these services, consider twice. Some of the TV series and movies that streaming providers offer are also on demand through your cable provider if you have cable.

If you become accustomed to having monthly streaming costs deducted from your bank account or charged to your credit card, you may continue to do so without questioning your need for the services. You are practically throwing money down the drain when you subscribe to streaming but don’t fully utilize the service.

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6. Streaming Music

Another one of the 9 bills you should never put on autopay. You may stream almost every song from any artist with music services like Spotify and Apple Music. The drawback is that before you can access songs, you must enter your credit card or bank account information. Your account will be automatically charged each month’s price by the music service.

It’s a pleasant luxury to listen to music online, but only if you’re getting your money’s worth. The business will continue to draft your account even if your use declines and you stream less music or no music at all until you cancel your membership. You may end up paying for a service you no longer use if you fail to cancel.

7. Cosmetic And Beauty Boxes

A number of cosmetics companies advertise monthly subscriptions for beauty boxes, which send users a box of goods to try out at home. This is a clever marketing strategy used by cosmetic businesses, and it’s a simple method for you to try out several beauty brands without having to pay full retail price.

These memberships can appear to be a small monthly expense because they are often rather affordable, starting at about $10 per month. But over the course of a year, the price of a beauty box membership mounts. If you choose to have this subscription paid for automatically, you run the risk of forgetting to break down the cost and determine its worth. Even though you may spend over $100 a year, you might only use a portion of the products in your boxes.

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8. Newspaper Subscription

If you prefer reading the news than watching it, you can always have the most recent headlines at your fingertips by subscribing to a print or digital newspaper.

Subscribers to several newspapers have the option of setting up automatic payments. Considering you read your subscription, this isn’t a bad deal. But of course, things might suddenly get chaotic in life. Additionally, if you get too busy to read the newspapers and pile them in a corner, you’ll spend money on a subscription that you don’t use.

The likelihood that you will terminate your subscription after you are no longer receiving value from the service is higher if you plan one-time payments per month, on the other hand.

9. Annual Subscriptions

The number 9 of the 9 bills you should never put on autopay. Do not set up automatic payments for any subscriptions or services that renew once per year. Annual expenses might catch you off guard, even if you’re a well-organized person with a great memory and a talent for recording everything on the calendar. You might forget the next due date if you don’t receive a reminder because you don’t think about these invoices on a frequent basis.

Annual subscriptions that auto-renew grant authority for a firm or store to charge your credit card or withdraw money from your account on the due date for the subsequent payment. If you don’t budget for this expense, the business may draft your account when there aren’t enough funds in it, which would result in an overdraft fee.

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By Thomas Goodman

Thomas Goodman is a Degree Holder, a prolific Personal Finance writer and Expert. His work has been recognized by Millions of people round the world and the United States precisely. He has since over a decade, helped people to manage and gain full control over their finances through his adequate and concrete write-ups. His Goal is to inform and educate people worldwide on Personal Finance, Budgeting, Banking and Finance, Career Planning and Savings. He loves to Educate people to attain their financial freedom. Reach out to Him personally on [email protected]

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