Three Tips to Avoid Late Fees

Penalty word in 3d letters on a steel bear trap to illustrate punishment, fees or fines for breaking rules

Do you ever procrastinate on paying bills? Solutions exist.

 

The List

First make a list of all your monthly bills and their general due dates. Note that some may be due weekly, while others are monthly or quarterly. Some bills will usually have due dates early in the month while others will be due later in the month. Organize your bills in the order that they need to be paid.

 

Pay Date versus Due Date

This is a place where lots of people screw up. Whether you pay electronically or send in a check, there is a time span between when the payment is made and when it arrives. If you pay online, your bank will usually have a note as to how many days it takes for the money to be transferred. If you put a check in the mail it could be anywhere from two days to who knows when. Scheduling pay dates a week before due dates is generally a safe bet.

 

Alert, Alert

If you’re income varies, have you noticed that institutions don’t like it when you try to pay a bill with money that doesn’t exist? Alerts can help with this. With online banking you can set alerts to send you an email with your balance daily or weekly. They can also let you know when a check posts, when you have a low balance threshold, and more. This is great information whether you are paying all your bills yourself or using automatic deductions to handle the job.

 

Finally, tips are only good ideas without implementation. So schedule a chunk of time in your calendar each week to be used for bill pay. Make it an appointment. If something that feels more urgent comes up, make sure to reschedule to a time within 24 hours.

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