Automatic bill payment question.

[crazyme5kids]

Does anyone have their bills paid automatically? What are the pros and cons to it? My husband gets paid 2 a month, so depending on how the pay period is, sometimes it's the beginning and middle of the month, other times it's the middle and end. Please tell me everything you like about it and everything you don't, including if you have had any problems as a result of it. Thanks.

 

[mickeyfan1]

I have 2 that get paid auto. I get paid only once a month (except December when I don';t get paid at all, and January when I get paid twice). I just have to remember to deduct the one from my checking account before I pay everything else. The other ones go onto my AMEX. so that's not quite the same. Pros - Not worrying about mailing the payment/ Cons - Forgetting to deduct. I have never had a problem with the auto deduct from my checking, just my memory!

I would like to have my mortgage ayment done auto, BUT the bank want $625.00 to do it. I am NOT paying for that!

 

[December99]

I have several bills paid out automatically and I love it. Saves from not writing checks and I go through enough stamps each month it saves a bit on those too!!!! I have a budget setup on my computer in Excel and I have it automatically in there so I remember to deduct it from my checking account!

 

[crazyme5kids]

Mickeyfan1, so you pay your bills using Amex and just write 1 check to them? Is it done automatically? Does Amex have an automatic bill payment program?

 

[crazyme5kids]

What I would like to do is have all my bills that are paid out monthly done automatically. Can this be set up with a bank? Does anyone do this? Does it help you stick to a budget?

 

[mickeyfan1]

Yes, the ones that go to AMEX, I just make that payment each month. I like to use AMEX as much as I can for the rewards points, might as well get something extra for the satellite TV besides reruns (Ha Ha). I think I could get the AMEX to be paid out of my checking account, but I don't write a check to AMEX, I just pay it on line. That way, I can pay as I go if I want. If it was automatic, it would probably be just as easy.

I like paying online the best, for some reason I think I am in control. So far, so good. I haven't had any problems with double payments, or missed one's either.

My DH has the Electric and Water bill paid out of his checking automatically, he gets the bill and it says the day they are taking it. He hates to think about writing checks, so that makes his life a litlle easier. He even remembers to deduct it from his register! He gets paid weekly, I wouldn't know how to act with all those deposits!

 

[janette]

I have my mortage and a few other loans paid automatically and have never had a problem. I use internet pay for almost everything else, I'm down to just a few bills that I actually have to use a stamp for. I don't use a payment service, just sign up with each card holder, some I have billed directly to my CC card that way I get the flyer miles.

 

[LuvTigger]

I used to work as a bank teller and I think electronic banking is great. My only suggestion, aside from making sure to deduct it from your checkbook, is to also check to make sure it was deducted properly on your statement. There were a few times where the BANK mistakenly would deduct the same item twice, and this would happen to all billpayers. It wasn't a regular occurence, but it happened at least 3 times during my 5 1/2 years there. While the problem was rectified within a couple of days and for most people it wasn't an issue, it did affect a few.

Also, check to see if your bank charges for that service. Sometimes banks do charge a monthly fee for the service, but if you set it up with the company you're paying, it's free. For example, our local telephone company deducts from checking with no charge. It is probably easier to set it up thru the individual companies because they will deduct from your account the exact amount you owe. However, if you do that, chances are you won't be able to specify the date you want it paid. With the bank, you might be able to specify the date, but you might have to do something like call in to an automated service on the date you want it paid to pay a specific amount, unless it's something where you know the amout is going to be the same every month.

Hope I didn't just make this more confusing! There are lots of options, you just have to decide what works best for your needs and your bookkeeping system.

 

[DVC-Don]

We have two that come out of our checking account automatically. Lately I've changed two bills to go onto my Visa card. (get airline vouchers there).


I also have several that I manually pay through the computer. I think I'll change over to the credit card method though.

 

[janette]

I use Quicken to manage finances and it will download transactions from the bank, some credit cards and other financial institutions. You can set up automatic payments there and tell it when you want them added to your register. I usually have them done 10 days before they are due so I can make sure and not forget they are coming up. I'm sure other financial packages do the same and right now most are free with rebates on tax software. I'm going to upgrade mine as I'm overdue for a newer version.