Setting your bills to be paid automatically can help take a lot of stress out of your financial planning. However, before setting them up, take a look at some of the benefits of auto payments as well as some things you should keep in mind:
Pros:
NO MORE LATE FEES
While they may seem small at the time, late fees can really start adding up. Setting up automatic payments can help dispel these fees, saving you money.
IMPROVE CREDIT SCORES
Your credit score is greatly dependent upon your ability to make on time, regular payments. By setting up auto pay, you’ll never have to worry about a payment due date passing you by.
LESS HASSLE
Chances are, you have a lot going on in your life. It can be hard to remember things that go on in your day to day life let alone when all of your individual bills are due. Setting up auto pay can help reduce that stress knowing that you won’t be receiving late notices in the mail.
Cons:
OVERDRAFT FEES
It can be tempting to set all of your bills to be paid automatically and put your finances on autopilot. However, you put yourself at risk of over drafting on your account and dealing with fees. Take the time each month to look at all of your bank and credit card statements. If everything seems to be adding up, you’re good to go. If something is off, correct it before it becomes an issue.
PRICE CHANGES
When you set auto payments, you may not even notice when the total changes on a bill. For example, say your streaming services raises their prices. You have auto pay, so you don’t even think about it. A little price raise here and there can potentially have an impact on your overall budget leading you to believe that there’s money when there’s not.
While we highly suggest setting up automatic payments, it’s important to not become complacent with your finances. Think of it as a personal assistant and check in from time to time to make sure it’s doing its job correctly. Automatic payments are a great way to make your life a little easier. If you have a Cyprus account, you can set up automatic payments in your home banking or our mobile app.
