Paying bills online- Auto Pay or Bill Pay?

[CindyE]

I'm notorious for forgetting a bill until a few days past it's due date. This has bitten me a couple of times. I've tried various systems, but setting everything to auto pay works best so far. I login to our bank account daily to monitor. I get paid every two weeks. There is one week that is always tight, and there are a few bills that sometimes auto pay early. I'm worried that i'll be short one of these times. I've given some thought to switching to Bill Pay, where they will all still be visible to me, but i control when they pay. Any thoughts? Would it be hard to switch?
Thanks!

 

[jkaetz]

I'm notorious for forgetting a bill until a few days past it's due date. This has bitten me a couple of times. I've tried various systems, but setting everything to auto pay works best so far. I login to our bank account daily to monitor. I get paid every two weeks. There is one week that is always tight, and there are a few bills that sometimes auto pay early. I'm worried that i'll be short one of these times. I've given some thought to switching to Bill Pay, where they will all still be visible to me, but i control when they pay. Any thoughts? Would it be hard to switch?
Thanks!

I'd say your best option is to rework your finances so you're not waiting for a paycheck to pay your bills. I get paid monthly and always make sure I have enough in the account before the next check hits to pay my bills. No more concern about when the auto payment goes in.

If you have the auto payments set to pay on a certain date they will calculate the time it takes to get the payment to the payee and withdraw the appropriate funds in advance of the due date so that it gets to the payee on the date you specified.

 

[tatic05]

Personally, I have bill pay where I choose when to pay. I have a system that works for me down. I receive an email from the company (electric, city, etc.) and since I have a set pay schedule (same day every other week), I log into their site and set up a payment to come out after I get payed. After I do that I get and email confirmation and I delete the original bill from my inbox. I will leave the confirmations in my inbox until I see it come out of my bill account. I usually set up payments for weeks ahead of time the day I receive the bill for that month.

 

[JollyMon]

I like to see what I am paying before actually paying it. So Bill pay. I do have auto pay on my credit card just to ensure I never miss a payment.

 

[rhinoabe]

Back when things where tight I had $5000.00 free over draft protection. Then when pay day came I would transfer funds over and it might cost .25-$1.00 in interest.

 

[CindyE]

I'd say your best option is to rework your finances so you're not waiting for a paycheck to pay your bills. I get paid monthly and always make sure I have enough in the account before the next check hits to pay my bills. No more concern about when the auto payment goes in.

If you have the auto payments set to pay on a certain date they will calculate the time it takes to get the payment to the payee and withdraw the appropriate funds in advance of the due date so that it gets to the payee on the date you specified.

Yeah, I'm working on that, but it's not happening quickly! We had some bad luck a while back, hubby laid off, etc. Things are more predictable now (knock on wood), and i only have 3 payments left on my Jeep...hopefully that will help!

 

[tsm]

Have an app on my cellphone called Bill Reminder (free). Since most bills are due the same date each month, I set it up to remind me a few days in advance of when each is due and I then go pay online via Bill Pay. Won't let me forget as it keeps bugging me until I tell it to skip this month's payment and I don't do that until I've paid it.

 

[CindyE]

Have any of you switched from Auto Pay to Bill Pay? How hard is it to change and set up? I'm afraid of switching and causing a bill to go unpaid during the transition time. I'm not at all familiar with Bill Pay. I keep reading that Bill Pay is the way to go, so that some unusually high bill doesn't get auto paid. I read about someone who had a huge mistake on their utility bill, it auto paid, and then they were left short for the rest of their bills. It was eventually credited back to them, but in the meantime, they had insufficient funds for their other bills and incurred late fees, etc. Although we are often stretched thin, and rob Peter to pay Paul sometimes, we both have very good credit, so i'd like to keep that!

 

[JeremiahJohnson]

Bill Pay

 

[DoggyDaddy]

I use Bill Pay through my credit union. I also like having control over when things get paid. I get paid every 2 weeks and in some months there is an "extra" paycheck, so sometimes I "pay ahead" on things like my car payment.

 

[JettaKnight]

Have any of you switched from Auto Pay to Bill Pay? How hard is it to change and set up? I'm afraid of switching and causing a bill to go unpaid during the transition time. I'm not at all familiar with Bill Pay. I keep reading that Bill Pay is the way to go, so that some unusually high bill doesn't get auto paid. I read about someone who had a huge mistake on their utility bill, it auto paid, and then they were left short for the rest of their bills. It was eventually credited back to them, but in the meantime, they had insufficient funds for their other bills and incurred late fees, etc. Although we are often stretched thin, and rob Peter to pay Paul sometimes, we both have very good credit, so i'd like to keep that!

Now everything I have is auto pay. However, I do monitor it for irregularities. My mortgage was set to automatically pay $X, but the escrow went up a few bucks to $Y - the system did not make the payment because it wouldn't allow $X and wasn't set up for $Y. Other than that, I've never had problems.

Anyways...

Yes, it's relatively easy to switch from "auto to manual" if the system is a web site you access. If there's a paper form or phone can then, no, switching between the two wouldn't be easy. When you switch to auto, keep an eye to make sure the first one goes through OK. Usually with manual bill pay the transaction can go through in one business day (or same day) so it's easy to verify.

For me auto is a blessing because no more forgotten bills paid (or stamps!)


For you Cindy, go with a manual online bill pay and get a schedule list for each month. Each month pay the bill and cross it off for the month. Furthermore, a lot of those systems will warn you when a bill is due in case you forget.

 

[ruger1800]

Don't do auto pay it easy for them to make errors, write due date on calendar so ya don't forget.

 

[Libertarian01]

Cindy,

I know a lot of people are paranoid and some rightfully so, but I have had companies automatically deduct bills from my checking for over ten (10) years . I have never, never, never not one (1) time had a problem with this! The same goes for automatic deposit from my employer. I have never had a problem with that.

I know that early in the month on or about the 3rd I have certain bills that WILL be deducted. I know that on or about the 19th of the month I will have other bills deducted. I know exactly what those amounts will be and make certain I have the money there to cover them.

Doing this has forced me to work with certain expense accounts so that I am not in the same situation of having a time of month where my account is extremely thin! If I am going to take on a new expense I get pushy on when they will take it out and may wait a week or two to purchase that service just so it will come out in a certain time frame of the month.

I could face a big problem if I ever changed from my credit union, so this would have to be a factor for you as well. Are you going to stay with your financial institution for years or do you switch a lot?

For me there is a peace of mind knowing that I don't have to do anything, that my bills will be paid on time and never be late. No late fees or credit problems. The one thing I have to concern myself with is having the money in the account. Over time I have just set autopilot on knowing how much will be coming out during the month so it is easy to plan.

Regards,

Doug

 

[looney2ns]

Some places will allow you to set the date for automatic payments.
Maybe you can change the problem payments with those companies.

I have some auto pays setup, and use bill pay through quicken.

Never had a problem with either that wasn't my fault.

My Credit Union has a great setup online for paying bills. And it's no extra charge.
You are in control when auto pays get made from your end, not the other way around.

Be sure to explore everything your financial institution offers online.

 

[guns and groceries]

I can assure you that I am not a smart guy with money. For way too many years I lived paycheck to paycheck and had no written budget. When the bills came in the mail I would put them in a pile and wait until payday and then log on to checking account and bill pay them. Wait 2 weeks and repeat. And I was always shocked that I made a decent living but had nothing at the end of the month.

Then Dave Ramsey came into my life and I have never been happier. I have a written budget for the month and EVERY single dollar has a purpose. Once I put everything on paper it all fell into place.

Do some research on Dave Ramsey, pick up his book The Total Money Makeover. He is not a Sage, Guru, or God. He just makes you think about money differently and he has opened my eyes and allowed me to get a good hold on my finances and future. A written budget is the key. I spent most of my time worrying about not having enough money and missing something every month and now I have every month and every dollar on paper for the next year.

 

[1911ly]

I use myycheckfree.com for the gas and electric. I get email reminders. when I get the notice I set the date I want to have it come out of my checking. My water bill is auto pay threw the bank. The only bill I have to remember to pay is the cable. I have them on auto pay until they for some reason decide to triple dip me one month. That was a freaking mess. I had a hell of a time getting that straightened out. I got 2 months free cable though.

 

[david890]

I use both, but prefer Bill Pay. My memory was damaged during a spinal surgery, so I sometimes forget. However, I use features on my phone and computer to remind me when bills are due. I simply feel better being in control. Also, should I come up short (I'm disabled, and on a VERY small income) due to an emergency, I can pay a bill using a credit card for that month. Yeah, I know, I'm not really "paying" that way, but it works with my budget!

 

[JettaKnight]

Don't do auto pay it easy for them to make errors, write due date on calendar so ya don't forget.

Do you also demand paper checks from your employer for the same reason?




Oner late payment can be worse than the risk of an error.

 

[Snapdragon]

Have any of you switched from Auto Pay to Bill Pay? How hard is it to change and set up? I'm afraid of switching and causing a bill to go unpaid during the transition time. I'm not at all familiar with Bill Pay. I keep reading that Bill Pay is the way to go, so that some unusually high bill doesn't get auto paid. I read about someone who had a huge mistake on their utility bill, it auto paid, and then they were left short for the rest of their bills. It was eventually credited back to them, but in the meantime, they had insufficient funds for their other bills and incurred late fees, etc. Although we are often stretched thin, and rob Peter to pay Paul sometimes, we both have very good credit, so i'd like to keep that!

I have fifth third, and you can go back and forth between auto pay and bill pay any time for any bill. That being said, I do autopay on almost everything. I estimate the amount on the utilities a bit high, so I will have a credit balance rather than owing. Right now I have a $250 credit balance on gas and electric, so I can take a month off.

 

[Nacelle]

I use Billpay. That way I they can't withdraw whatever they want. I like having to manually input how much they are getting. The meter might get read wrong and you get charged a huge amount. They don't care. They'll take it right out of your bank and you'll be up a creek if money is tight.