9 Responses to Problems with Automated Payments

  1. Annie Jones says:

    I prefer online bill paying through my bank. I pay all the bills I can with it. In order to earn interest on my checking account, I have to have one bill set up to be paid automatically each month. All the rest are paid only when I decide they are paid.

    I still use paper checks for a couple of bills a month. One of those doesn’t accept online payments, and the other (our van loan) contains extra money to go toward the principal. I like to add a handwritten note to that one so that I’m sure the funds are directed as I intend.

  2. Julie says:

    I like paying everything by mail.

  3. ~Dawn says:

    I’m with Julie, I like seeing the money go through my hands and knowing that I paid that and not relying on a bank.

  4. Kate says:

    I pay most of our bills through online banking, but they are set up by me each month. I do not have any set up to go automatically, even though that is an option. I save on the cost of stamps and I know exactly when the money will arrive so it’s never late (dependent on the USPS).

  5. Max says:

    Good point — although I suggest telling anyone who is trying to draw out of your account to f*ck off if the withdrawal is unauthorized. If it’s not their money, why are they trying to draw it? In a very strong language, threaten them. Tell them you’re a search engine optimization specialist, and if they don’t budge, theircompanysucks.com is going to be the very first site people see on google. Works every time.

  6. The problem with automatic payments is the same with paying for clothes with a credit card: you’re emotionally separated from the pain of spending. When you hand over cash or have to write out a check (or manually process a bill online), you’re feeling the pain of the expense.

    When you feel the pain, you’re likely to spend less or at least revisit the necessity of the expense.

  7. Jessie says:

    I like to pay bills online through my credit union, assigning the date each month because I’m paid every 2 weeks so the money is not always there on the same date.

    Two warnings: I used to receive all my bills electronically, till the day my computer crashed and for one month I didn’t know all the amounts I owed or when they were due. Now I always have the statements mailed to me.

    Also, double check on your bill payer. When online bill payment first started, the bank I was with neglected to send in my car insurance premium, and the company canceled my insurance without notification. I first found out nearly a year later when I was stopped at a routine police checkpoint, my wallet insurance card was expired and I inquired why I hadn’t received a new one.

  8. brian says:

    This just in…if you are living paycheck to paycheck, Auto Payments ARE NOT for you? This seems pretty obvious to me. I use Auto pay all the time and it is very convenient. I recently moved and had no issues with any of my accounts, however I am very organized and on top of all my payments.

  9. Gail says:

    I don’t particularly like automatic payments due to hubby being self-employed and with erratic payments. But I use it for a couple of things that saves me money–I signed up for my Medicare C&D to be automatically withdrawn which saves me $2 a month each plus the stamps. I know when my disablity check will come and so I automatically draft that amount out of the check in my checkbook (also the mortgage payment) and don’t have to worry about them being there in time. I prefer paying other bills by hand so that I can keep track of them such as electric and propane–this year I am tracking the amount used and want to do a chart in excell to track usage on a year to year basis based. I realize that I can do that on line, but paying your bills yourself puts you in control. We are paying off a couple of credit card bills and paying extra each month. By paying manually I can determine each month how much extra to pay on the bill and seeing those babies drop is a great thrill.

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