Saturday, October 06, 2007

the simplest way to automate bill payment

I recenty talked with a co-worker. He, like myself, travels several days a work week (if not every day). Older and more experienced than myself, I asked him how he kept on top of his bills. His answer...

Have everything charged automatically to his credit card or ACH'd from his checking account.

Frankly, I was impressed with the simplicity, but concerned that he lost his negotiating position for bills he disagreed with. He makes north of $450k, so I expect cash flow is not likely an issue.

I've began thinking more and more about automating payment for repeating bills onto my credit card. Why not? The card's limit would exceed the monthly bills and certainly simplify monthly bill payments.

Here's the question? Do I weaken my position if I have a dispute? Is the simplicity worth the risk?

Regards, makingourway

6 comments:

Millionster said...

Just because you pay the bill doesn't mean you can't argue charges on your bill. If anything they'll credit you on the next cycle. It's nicer IMO to have your bills paid on time than to worry about a few dollars.

My Road to Wealth said...

I don't like to let vendors have the control either. So the way I do it is once the bill is generated, they will email me. I log in, if the amount is no problem, then I pay on line on vendor's website. Just one time payment, every month. The key is I have quicken, and I put reminders on it to remind me that certain bills are due on what date so that I won't forget to pay. Couple bills I do automatic too, such as electric and water. But those bills since they email me first, if I check and I have a dispute, I can always cancel the automatic payment option before the ACH date so that I can have time to resolve the proble.

Anonymous said...

Well, how often do you have a dispute and how much is it usually about? For the types of monthly bills which you would automate - I'd guess this is not a big deal. Say it's $100 every 6 months: probably still worth it just for the convenience.

When you travel a lot, every hour at home is important ...

Anne

Mr. said...

Interesting Idea. My wife and I put most of our Joint expenses on a shared Credit Card. I just checked my rewards points this morning and noticed that if we were to redeem these points it would be worth about $200. Adding additional bills (electric, cable etc.)would help me add more points every months.

Ryan said...

I have several bills on autopay. Sometimes I don't get around to actually reading the bills until after they've been paid. Yet I still call and dispute something if I feel it's wrong. Not once have I experienced a problem with them offering a credit that will be on the next bill.

Wayne said...

For some bills, I use it against a credit card. Nice way to build points and for others, I use my checking acct due it being the only option. It makes it real easy and prompt. Saves money on stamps as well.

WW