Bill Paying and Timing

Re: Bill Paying and Timing

I think we all have had that issue, and continue to have that issue as we grow in life. Just to name a few reasons why we may struggle: vehicles, mortgage, CHILDREN, clothing, GAS, food, utilities, rent, medical, taxes, accidents, activities, pets, and on, and on, and on.......

A few years ago I decided to work 2 full time jobs during the winter months. It hurt, but it put me ahead and helped me get out of debt. I recommend that to anyone who has monthly income/debt issues.

[vsjhoc]

Re: Bill Paying and Timing

It's interesting how we each have our own system.

I need an idiot-proof system. And I have an almost irrational fear of paying late. It doesn't just cost you a late fee, it can hurt your credit.

I don't pay any bills by mail. Everything is paid via auto debit -- mortgage, house insurance, car insurance, electricity, gas, water, telephone, cell phone, security system, newspaper, ISP (Internet service), web hosting, savings, etc. I know some people think "oh, my gosh, that's so risky, they're gonna go into your account and take everything!" I've been doing this for years and I've never had a problem.

The only bills I have to actually pay are 2 or 3 credit card bills, and I do it on-line at the card company's site (as opposed to my bank's site). I schedule them at least 5 days before the due date because even though you specify the date you want it paid, it might not post until the next day.

Do whatever works for you!

[tinapbeana]

Re: Bill Paying and Timing

i get paid the 15th and 30th of every month as opposed to bi-weekly, so i sat down and figured out which bills are due the 1-15 and which are due 15-31. The check i got the 30th of september pays bills due the 1-15 of october, while the check i got october 15th pays bills due the 16-31 (withsavings and whatnot all budgeted in around, of course). with this method, i deposit my check from work,come home, and write up the bills that are due anytime the next 15 days and pay them all at once (even have my online bills set up to pay accordin to this schedule).

the other thing is to get used to paying bills early as opposed to when they're due.

[Marketiva]

I would love to pay off all my bills when they first come in, but I get paid 2 times a month. Sometimes there isn't enough money in my checking account to pay off the bill when it arrives. Then I put it aside and sometime accidently forget about it. How can I solve this problem?

You can solve this problem with the following procedure:
When you get your bill(s) you should determine the sum of the bill(s). May be on the moment you have not enough money on your checking account but it's not problem, because you can set a transaction date according to the prompt of your bill(s). The setting of future Wire Transfer(s) is very easy. So maybe you'll forget the pay off but your bank not -

[LivingAlmostLarge]

We get paid biweekly for DH and monthly for me. What I do is live a month ahead. Have a month in cash reserves. It can take time to build up that reserve. I also deposit monthly bills which are due monthly.

[Broken Arrow]

Well, I'm an idiot when it comes to these things, but I think I've figured out a way that works very well for me.

I pay all my bills online, and I also have them set to email notification since I check my email daily.

I also have a budget that sets aside the necessary amount for each bills from within my checking account.

These line item budgets are also filled in pre-determined amounts. For example, if I'm paid bi-weekly and I have a $40 monthly bill, I would set aside $20 every time I got paid to pay for that bill.

When the email comes in, I simply click the link, pay it from my checking, burp, and continue on with my life.

[Aleta]

I like you have started to do the same. Before, I deposited the paycheck into the regular checking account and then transferred any money out to the Money Market Deposit Account. Now, I deposit the check into the Money Market Deposit Account and then at the end of the month, transfer money into the regular checking account to pay bills. Since, I can only use 3checks from my money market, they are normally larger checks such as a credit card or property insurance.

[cptacek]

I agree, to help you remember, a note or an envelope or an email or an alarm or something has to remind you wherever you look. If you check your email every day, then getting an email to remind you will help you. If you don't check your email every day, that won't work. If you check your blog every day, then that is were you could keep it, but again, if you don't, that isn't a good place. My mom uses a clothespin to hold envelopes on the front door's curtain so it won't get lost, and adding the date to that would allow her to know when it needed to be paid. If you look at your calendar every day, put it there. You could get a white board to stick to your refrigerator with magnets, and write the reminders there.

If you have kids, how do you remember special things for them? Like band trips or half days off or "wear purple today" days? If you already have a system for the rest of your life, just incorporate your bill paying into that system.

If I need to remember to do something the next day, I put my truck keys by it. I have to drive to work, and only use one set of keys. If I want to take lunch to work the next day (I know, I know, I should do that every day, but I don't) I put my keys on top of the container in the fridge.

I have one bill I need to pay next week and it is the only one I pay that has to be done by check. I have that check written out and in an envelope in my truck with the due date on it. I'll drop it off next week when it is due.

If you pay bills with check and envelope, you could use a manilla envelope and tape a lined piece of paper to the outside. You could put all the bills and their envelopes inside the the manilla envelope and write on the outside what is due when. When you send it, mark it off.

I balance my checkbook about every week, using an excel spreadsheet set up like a check book register. If I have a bill coming up that I haven't paid yet, but know it is coming up, I skip a few lines and enter who I need to pay and the amount. The space sets it apart from the already reconciled ones, and helps me budget for when I actually do pay it. i.e., if that bill puts me into the red, I know I need to transfer some money to cover it.

I also have another tab on that same spreadsheet that I populate with what bills are due when, how much it was, and if it is automatically withdrawn or not. I was waiting for bills to come in or logging on to each website each time I balanced my checkbook to see if I needed to pay it, but I couldn't keep track of it in my head. So, I made one for each each month marching along to the right, and each bill in two rows going down with the amount and the date due. When I pay it, I color it in gray. The automatic ones are yellow (until I pay it, then I color it gray). This helps me see what has been paid, what is coming up, and when it is due. It also helps me to have a record of what I have paid in the past so I can get better at budgeting.

[Fred333]

What i like to do is keep the bills in a nice safe place so that I have scheduled day of the month that I sit down do the bill paying. That way it becomes a routine.

[cantretire]

All my bills, except my rent and maybe 1 other, are automatic. I have overdraft in case a bunch go through at the same time. I just make sure I pay the overdraft out of my saving immediately since the interest is so high. I then 'pay back' the saving account the next payday. This happens very rarely. There's one I have to log on to pay manually, but I set an 'alarm' on my Microsoft office so that I don't forget.

I also go over my bills on payday - every 2 weeks - to be sure nothing has slipped through the cracks. I take this time to go over my checking account to see what has gone through and what is due before the next paycheck. You can contact some of your bills and see if you can change the billing date. I think most charge cards are willing to do that.

Since I've started this about 2 - 3 years ago, I haven't had any late payments. My FICO score even went up.

[BabyBear]

I sat down a few months ago and set everything up on budget billing.

Then I figured up exactly how much I need every month for my bills.

Mortgage (insurance/property tax included)
Cable/internet
Water
Electric
Truck insurance
Gas

I figured up how much I need a month for all of these combined. Then I divided that by the number of paychecks. At the time, I only got paid twice a month. Now, it's every week.

I opened a checking account just for paying these bills. So, I deposit the needed amount into the account each week. Now I have enough to cover my bills when they come in. No more waiting until the due date to get it in, no risk of paying late. I pay it the day the bill comes in.

As for groceries, gas and a few other things, I have envelopes for these and use cash. I put the money in the envelope each week. I keep track of my spending so I know about how much to put in each.

It has worked out very well for me.

[Fesheva]

My strategy is similar to the one a few others may have posted.

I get paid every other Friday. I have a nice sized calendar from my children's school district. It alerts us of different days they have off and shortened day schedules. I use this same calendar to alert me of due dates for my bills. Its located on the wall right above the kitchen trash can so its difficult not to see it and be reminded at least once a day.

AS SOON AS the bill arrives in the mail, I write the name and amount on the date it is due. I add all the bills that are due between one payday to the next and pay them on that payday regardless of how late in the pay period it is due.

Forget about holding the money as close to the due date "in case of an emergency". If I pay for a short term emergency with bill money then I just created a new "emergency".

There's nothing like the piece of mind of knwing all my bills are paid for the next two weeks and all thats left (what little that may be) is all mine!!

[finsub]

Debt

I lost a judgment for a debt credit card in 1997. I am being contacted now to settle. I wish to pay this off now however I think it could be negotiated. What is the right way to negotiate a 8600.00 debt like this?

[mackybethsmommy]

Call the company who is handling your account now and ask them if they will settle the account for less. Alot of times the will forgive any interest on the account or settle of half of what is owed. If they give you a number you can't afford ask them if there's any way they would settle for X amount of dollars. The worst they could say is no, but usually they would rather get a payoff than have to deal with payments. Good luck!

[TheTexan]

I have everything written on a calendar and keep enough money in my checking to pay them as soon as they come in. It is the only way I have been able to stay on top of them and it works great. Also, try ot automate as many payments as you can online.