Pay Bill Payments on Time

Paying late fees and penalties is just a waste of money. Lack of organization and poor planning are often responsible for late bill payments. Sometimes, payments are missed all together due to disorganization. This is a financially devastating pattern to let yourself fall into. Not only does it cost you money, certain late payments will reflect poorly on your credit history. Creditors may get the impression that you are financially unable to pay on time even if this is not the case. If you are having a problem getting your bills paid on time, try to set up a plan to pay bill payments.

Individuals who pay bills late, typically have no plan to manage income and spending. Knowing what bills you have to pay and when they are due is the first step. Make a list that includes each bill, payment amount, and date due. All of your bills may have different due dates, but each individual bill will probably be due on the same day each month. However, there are some exceptions. Still, bills with fluctuating payment dates are usually due within the same 3-5 day period and can still be effectively planned for. Here are a couple of strategies that could get you back on track.

1. Open a checking account specifically for paying your bills. Calculate how much money you need to set aside from each paycheck to pay your bills. Add up amounts for all monthly bills and divide by the number of paychecks received in a months time. Each time you receive a paycheck, place that amount in the checking account. If most of your bills are due around the first, start setting aside money for your bill pay plan right after the first of the month to prepare for the following month. If the majority of bills are due on or about the 15th, start your plan right after the 15th. Pay only your bills from this account. If a bill is due before the full amount is accounted for, go ahead and pay it, it will still work out by the time the majority of your bills are due.
2. If your bill due dates are scattered throughout the month, call each payee (biller of services) to request a change in the due date. Most payees will offer at least a one time change in bill due date. Arrange for as many of your bills to be due on the 1st or 15th as possible. Choose the easiest route. For example, if a number of your bills are already due on the 1st or 15th, opt to change others to that date to minimize the number of payments you have to change. You may want to do this even if most of your bill payments are currently due around the same time, if it is possible to move all payments to the same or approximate due date. It would just allow for more ease of planning for, and paying, your bills. Once you get payments organized to a central due date, continue with the steps outlined above to get your bills paid on time.
3. To organize your bill payment tasks even further, you may consider enrolling in an online bill pay service. These are services that electronically pay your bills. For those payees who do not accept electronic payments, they will mail a payment to them. This service may cost you a small fee. Considering the savings in postage, mailing supplies, and late payment fees, you'll probably still come out ahead financially. The amount of money you'll be saving will be greater than any bill pay service fees.

If you're not ready to take on your entire financial picture yet, at least get your bills organized and quit wasting money on late fees. Focus on getting your bill paying tasks organized and on time. Then, take on the task of budgeting all spending. Creating your budget will be easier now that you have a plan for paying your bills, and are more organized. Creating a budget will help you get control of all financial matters, become financially independent, and build wealth.