There are a variety of ways to pay bills, from the traditional method of sending out your payment by cheque or money order through the mail, to stopping at the lender's offices and making a payment in person, to using the internet or automatic payment options. The right method is simply the one that helps you pay all of your bills on time and is the most convenient. Paying Bills through the Mail
If you would like to continue to write cheques and mail them, you just need to get into a routine that will prevent you from sending a payment out late. One way to do this is to prepare all of your cheques at the beginning of the month for each of your creditors. For your fixed-payment accounts, you can physically write the checks and have them ready to mail. Use an accordion file or bill sorter with dates so you can easily see your written cheques. Place them in the order that they're due, and as soon as the statement comes in, place the cheque in the envelope and put in the mailbox that same day. For accounts that may fluctuate (your utility bills, for example) just write the cheque the same day it arrives and get it back into the mail. For this, you'll need to have enough money in your checking accounts to pay the bills as they come in, which may take some getting used to if you've always been one to live paycheque to paycheque.
Setting up Automatic Payments
Most creditors and utility companies now allow you to make payments from an automatic withdrawal from your current or savings account. This method is ideal for people who know they have a high enough balance in their current account to pay their bills. Just set each account up to take out the monthly payment a few days before it is due each month, and you can sit back and know your bills are being paid automatically.
The drawback of this method is if you happen to have less money than expected, you will be hit with overdraft fees from your bank. Always keep an eye on your balance and keep an accurate check register to make sure you have enough to cover your outgoing expenses. Alliance and Leicester, however, offer a twelve month interest free overdraft on their current accounts, while they also pay 8.5% AER for anyone who is in credit.
Paying Via the Internet
Most credit cards, loan companies and utility companies also have the option of logging into your online account and making a payment that way. You could set aside one hour every week to see what's due and make payments online. If you scheduled this as part of your ?work week? and made it the same time each week, it would become your routine and would not be forgotten. Paying through the internet is also particularly secure and can be automated. NatWest have particularly good security systems on their current accounts, but it's really extremely difficult for anyone to break into your internet banking unless they find out your details.
No one talks about this. Financial problems are seen as taboo in our society, and people seem to only talk about how much money they do have, not the problems they have. But many of us do have serious financial problems. Sometimes even people who seem to have everything together can't pay their bills. While it doesn't happen to literally "everyone," it does happen to good people.
We often spend a lot of time thinking about what it means to be broke. We think it means we're not taking care of our families, that we're stupid, that we're lazy. It doesn't mean any of those things.
Being broke just means you're broke.
If you find yourself unable to pay the bills, you can do one of two things. You can despair, run from the problem, and just continue on as you have been, with creditors calling, no money in the bank, and no prospect of things getting any better.
Or you can consider this a rock bottom experience and move up. While this is a very difficult and stressful situation, you can recover from it. You can use this opportunity to start making things better for yourself and your family. It won't be easy, and it will often be unpleasant, but you can do it, and if things are ever going to change, you have to do it. Start by asking for help. Contact a consumer credit counselor if you feel you need outside help. Contact your creditors and let them know that you want to repay them but are having difficulty making your monthly payments.
Most debt relief specialists suggest making a plan for your finances in which you pay your creditors 20% of your income, save 10% for future emergencies, and use 70% to live. This is a good plan. Make up a plan like this, and divide the 20% among your creditors proportionally according to what you owe each one.
When you explain this plan to your creditors (do it in writing), they may object. In fact, they probably will object. Don't argue with them about it. Just explain the plan once, and pay them according to the plan. Your creditors know that if they did take you to court, and you showed the judge your plan and the payments you've made, the judge would side with you, because you're doing all you can do.
This plan works because you keep enough income to pay for your needs and expenses, and you save some money to help you in future bad circumstances. Within the portion of your income you keep, you should use some of it for non-necessities, if you can.
This plan is designed to help you pay off your debts. It does not punish you for getting into debt; the debt itself is more punishment than anyone needs. You don't deserve punishment. You just need a way out, and this plan offers that.
Pay your debtors what you promise to pay them, and keep your payments on time. Honor your new agreement, even if they would prefer that you pay them more. Do the best you can.
Both Stefan Taylor & Brian Higdon are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
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