Many a times, we are always looking for ways to make life easier. But the question is – Is easy always better? When it comes to autopay for bills, I think not. And here’s why:
1. Easy to forget to track expenses
Putting monthly recurring bills on automatic billpay makes it easy to forget to review bills to ensure you were not charged more than you should have been. Many a times, vendors make mistakes with these bills and might overcharge you. It actually happened to me this month. I opened my water bill and saw that the amount was double what it normally is.
They forgot to post my payment from last month to my account and also charged me a late fee for this. As this bill is not on autopay, the company did not receive my abnormally high monthly payment yet and fixed it by posting it to my account and took off the late fee.
This is a prime example of why reviewing monthly bills are SUPER IMPORTANT! I already pay enough for utilities, I’m not about to give them more than what I actually owe them.
2. Hard to stop autopay
I have heard horror stories of how hard it is to get a company to actually stop the automatic payments being directly taken out of your bank account.
Sure, calling and making the request to cancel the service and stop the payments is easy, but the company actually going through with this is another story. I’ve heard automatic monthly gym payments are the worst.
This one in particular requires a lot of follow-through on your behalf as months can pass by and the gym continues taking the money.
3. Hard to get money back from vendors after they have already taken it
Once a company takes the money out of your bank account, it can take time to get it back. First of all, you have to make sure you review your monthly bills to ensure you are properly being charged, but if the vendor overcharges you, it can be some time to get the money back.
There is a big opportunity cost here with what you could have done with this money in the time being such as investing it. Conclusion I don’t use automatic bill pay for these exact three reasons.
It can definitely offer convenience, but be advised of the importance to review monthly statements and don’t just forget about it as the bill has already been paid. You could be overcharged and you don’t even realize it!
Have you ever experienced anything negative using automatic bill pay?