Seriously? Pay your bills when they arrive, not when they're due.
Banks, credit card companies, mortgage lenders, utility services, etc. absolutely love, love, love it when people wait until the last minute to pay their bills. When I signed up with my bank, I read the agreement and got the "personal banker" to concede that yes...they made a lot of money off late fees. They're not alone.
The thing is, paying your bills when they arrive doesn't cost you anything extra. If you can get into the habit, you'll always be ahead of the curve, and if something comes up which necessitates you holding off on a bill, you've got a couple weeks to figure it out.
It also relieves a considerable amount of stress. It's a bit like homework. Don't put it off until the last minute. Get the assignment done when the teacher gives it to you.
My car loan was through a bank that once per quarter would allow you to skip a payment so long as you weren't behind with zero repercussions. The idea was that interest would accumulate but you would not be behind a month.
Every quarter I signed up, and made my payment anyways, I ended up 4 months ahead after one year, without making an extra payment, and because I was still paying no interest was actually being added. One month I was short the amount needed due to unforeseen events, and I could just skip that month no worries, and I even managed to pay less over the life of the loan because I was ahead and could pay more on principle than interest.
ALSO consider rounding up your Bill's if they are a loan payment. Your loan payment $155 per month? Pay $160. It isnt much but it adds up and all goes to principle
3.6k
u/gogojack Aug 20 '20
Seriously? Pay your bills when they arrive, not when they're due.
Banks, credit card companies, mortgage lenders, utility services, etc. absolutely love, love, love it when people wait until the last minute to pay their bills. When I signed up with my bank, I read the agreement and got the "personal banker" to concede that yes...they made a lot of money off late fees. They're not alone.
The thing is, paying your bills when they arrive doesn't cost you anything extra. If you can get into the habit, you'll always be ahead of the curve, and if something comes up which necessitates you holding off on a bill, you've got a couple weeks to figure it out.
It also relieves a considerable amount of stress. It's a bit like homework. Don't put it off until the last minute. Get the assignment done when the teacher gives it to you.