| Doris Dobkins is the publisher of $mart Money New$. You can subscribe by
visiting her web site at
CreativeFinances.com |
How
are you paying your bills? Do you still write checks each month,
stuff them in an envelope and slap on a postage stamp, or have you
ventured into the world of online bill paying and automated
payments?
Bills can even be paid these days
with a simple phone call and telephone transfer. Most people have at
least a couple options available for bill paying. No matter what
method you choose, there are several things that should be taken
into consideration.
1. Fees:
If you would like to pay
your bills online or via telephone, make sure to ask about any fees
you might be charged for this convenience.
2. Time to Post:
Also, ask how long
it takes for the payment to be posted. Some places take the money
out of your bank immediately, cut a physical check to your creditors
and then mail it. Some simply do electronic transfers from your
account.
3. Security:
Check with your bank on
what security measures they provide for electronic bill paying and
what charges you may incur from them as a result. My bank charges a
small monthly security fee for those who choose to use online
payment services.
4. Personal Time:
Automated payments
and online billing can sometimes save you time when paying your
bills. If, however, you have money incorrectly taken out of your
account, for whatever reason, sometimes it is a very difficult and time-consuming process to get the money returned back to your account.
The biggest benefit I have found in
electronic or telephone payments is when I need to make a quick
payment. If you are like me, there have been times when you find a
bill under a stack of paper that is due the next day. Mailing in a
payment is out of the question unless you want to get hit with late
fees. When this happens to me, I immediately pick up the telephone
and request to make an electronic payment.
Even though many creditors charge
transaction fees for these transfers, I have never paid a fee yet,
even if the institution or creditor has a policy to charge one. I
tell them I was not aware of their charges, and ask if they would please
make an exception this one time. So far, no one has told me no. So,
it never hurts to ask. Your payment is credited immediately, you
avoid a transaction charge, and you avoid a late payment fee (as well
as an overlimit fee if you are at your limit, which many people
are).
Bottom line: whatever method you use
to pay your bills, be sure to consider all the factors involved when
making your decision. Do what works best for you and what makes you
feel the most comfortable.
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