Automatic payment for your bills: What's the catch!?
August 14, 2014 2:57 PM Subscribe
I haven't used automatic billing/payment for any of my monthly bills - where the company takes out the money to pay a bill from your bank account or credit card - yet. I'm considering to begin doing this because I'm tired of keeping track which bills I have/haven't paid yet and spending time to do so. Is there any catch to using it or things of which I should be cautious?
posted by fizzix to Work & Money (22 answers total) 2 users marked this as a favorite
I've been paying all of my bills manually (student loans, utilities, etc) and I'm wondering if I should just set up automatically billing of where the company will take the full payment each month on a specific date.
My main concern and paranoia is that I will be overcharged or incorrectly billed and that by already paying it, I couldn't reverse the charges and I lose any leverage that I would have with the company. Is this true?
I am also still using a debit card for all of my purchases. I am transitioning to my first credit card soon. When I do so, I would move all of these monthly purchases to automatic payment to my credit card or to my bank account and then for the ones charged to my credit card, have the full balance paid each month automatically from my bank account). Is this possible? Is it wiser to use automatic bill paying through a credit card or a bank account? Pros and cons for that?