A majority of people don't pay their bills on time and, thus, pay a heavy price for their laziness, without realizing how much this is going to cost them in the long term.
It is common knowledge that many people don’t pay their utility and other bills – like mobile, gas, electricity and credit card bills – on time. The result being that every month they end up paying hundreds and thousands of rupees as late fees alone. Yes, for some people, availability of funds may be a problem sometimes, but that is unlikely to be the case always. The fact is a majority of people pay a heavy price for their laziness, without realizing how much this is going to cost them in the long term.
For instance, if you have four credit cards and you fail to clear the minimum dues on time, you would be paying at least Rs 400 to Rs 2,800 (or even more) in late charges alone, depending upon the amount due. However, even if you are able to save, say, Rs 1,000 per month by paying your bills on time and the same amount is invested regularly, then you can make big money over the long term.
Apart from financial loss, even your credit rating can get adversely affected if you are not consistent with the payment of utility and credit card bills. This explains why you need to pay your bills on time. Thankfully, there are various ways to effectively manage your monthly bill payments. Here we are taking a look at some of them:
1. Organize your bills: Make sure you take into account all your bills and write down the due dates against each of them. “Arrange them in the order they need to be paid and identify the income source you would be using to make the payments,” says Adhil Shetty, CEO, Bankbazaar.com.
2. Use tools to help you keep track of due dates: Set up a fiscal calendar that has details of all the payments you need to make. You can set alarms on your phone at the very least. You can also use mobile apps and software to help you keep track of your payment schedule.
3. Schedule a time to pay bills: Set aside time each month to pay your bills. Don’t miss out paying your bills just because you didn’t have time to do it. Be regular and consistent.
4. Set up automatic bill pay: Automated bill pay is good for expenses that more or less stay constant every month such as loans and rent. For this you need to give instructions to the bank regarding this. “Find out on which dates the money will be deducted and flag them to ensure that there is enough money in your account to cover it,” says Shetty.
5. Use facilities like SmartPay: Banking products like SmartPay involves initiating a simple standing instruction on your credit card to ensure that you pay your utility bills on time every month. In addition, when you pay with your credit card, you can enjoy a credit-free period and reward points/cashback depending on the credit card you have. You will get SMS and email alerts about the status of your bills. You can also set your own limit on payment of mobile bills.