Paying your bills online makes it a much easier process. This can free up time, save you money and just make your life that much easier. You have several options when it comes to paying your bills online. In reality you will probably use a combination of the different options to pay the majority of your bills online.
Time Required: 60 minutes for set up
First you should gather all of your bills and divide them into three piles. The first pile should be the bills that are the same amount each month, such as loan payments or the cable bill. The second pile should be monthly bills that vary from month to month, such as the power bill or your credit card bill. The third pile should include bills that you do not pay on a regular basis.
You should start by setting up automatic drafts to pay all the bills that are a set amount each month. Most companies offer the option of signing up for an automatic draft. It is best to do an automatic draft only with bills that are consistently the same each month. You can either set it up through the utility or loan company or you can schedule it with your bank. Some companies charge a processing fee for an automatic payments, so you may be better off setting it up to automatically be drafted from your account.
To set up a recurring payment with your banking account you need to visit the Bill Pay section of your online banking page. You will set up a profile for the bill that you want to pay online. This profile will include your account number, the address that the payment will be sent to and the company’s name. Then select set up recurring payment. You will set a monthly date for the draft to come out. To make the process easier for you, you can also set this up on your computer software, so that it automatically updates for you as well.
Next you should consider the bills that you pay monthly that the amount varies from month to month. Paying this each month will help you to track your expenses more effectively and prevent you from overdrawing your account. First you need to go into your bill pay account, and set up a profile to pay the bill. Then when the time comes to make a payment you will select the one time payment option, click on the profile of the bill you are paying and enter in the amount. Be sure to record the transaction number the bank gives you as a receipt.
The irregular bills that you receive may be handles differently. This would include things such as your tag and registration renewal for your car or it could be a quarterly bill. These bills you can either set up a profile for on your bank or simply visit the company’s website and pay the bill online. Generally there is not a processing fee to pay the bill online if it is an irregular bill.
When you pay your bills online you should schedule payment a few days before the payment is due. This will allow the payment to be on time if there is a holiday or weekend. Additionally it gives you time to make corrections if the payment did not go through for some reason.
You can set up reminders in your budgeting software that will let you know that your payment should have been drafted from your account. This will help you keep a running balance of your checking account, and decrease the likelihood of overspending. You can save on banking fees if you stop yourself from overdrawing your account.
Although it is tempting to simply forget about your bills once you have set up automatic payments, it is important to check periodically to make sure that everything is being paid on time. This will prevent you from letting a mistake slide. You should still open your bills each month to make sure the payment has not gone up or that the account number hasn’t changed.
What You Need:
- Your Bills
- Online Banking Information