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Originally Posted by poundwise
I think the 'offer' is nothing more than a gimmick that appeals to people who can't, or don't, budget and who think having a regular amount, though higher, is better.
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I wouldn't agree to a plan that was charging $22/month above my average bills, unless there was an anticipated rate increase that would account for that difference.
We use the equal payment plan for our gas and electric bills (they are billed together from the same company). Even though I am very good with money management, I still appreciate the convenience of not having to think about what the bill will be this month. The potential amount of interest I lose by paying a little more than I need to in the warm months is minimal and balanced by the fact that I don't get hit with huge bills in the cold months when the heater is running.
As for the equal payment plan amount, I learned a few years ago that the monthly amount was negotiable. At the end of my billing year, I had a credit of about $150, meaning I had paid in that much more than I had used. I got a notice saying for the next 12 months, my monthly payment was going UP by 20-some dollars. I called and asked them to explain why they were raising the charge if my average was lower than the existing charge. I was told that a computer spits out those notices and I could make the monthly charge lower if I wanted to. So I dropped it to $5 less than the past year. Worked out about even for the following 12 months.