Importance of paying bills at time
Paying bills is an essential responsibility that needs to be practiced as it can affect your credit rating and late payment penalties can be hectic and can leave you in debt and stress. Paying bills on time can help in boosting credit rating, save money, help in obtaining lower-interest loans and improve credit score as its major factor depends on timely payments.
Some ways can help and enable you in preventing late payments and understand the importance of paying bills on time.
Organize bills according to its importance and due date. Certain payments can be deferred like a gym membership, subscription or rent (in some cases) but utility bills and repaying debt must be organized and kept on top priority. It can be achieved by using a calendar and marking paying dates on it or setting reminders on the phone.
Automating payment of bills is a stress-free method that can be practiced as many bills are recurring and frequent like loan installments, mortgage or utilities. Banks offer automatic deduction from the account to facilitate its customers.
Consolidating bills is another form of saving time and protecting from late payments. Services like the internet, phone and TV cable are mostly provided by the same service provider and consolidating the bill into one will be highly beneficial and there will unlikely be any chance of missing the due date.
Placing bills here and there can aid in late payments and extra charges, therefore it is necessary to organize it and place the bills in one place and ensure the location is visible for you.
Methods of paying bills
With changing times, trends have also changed and paying bills is no exception. People have found alternative ways to pay bills instead of cash. Methods like paying from credit or debit cards, loyalty program points, gift cards, and virtual wallets.
It is more convenient for customers to pay with any of these methods as it is quicker, seamless and hassle-free.
Paying through cards has allowed you to shop easily due to its feature of online payment and paying bills online. Carrying cash around is unsafe and more stressful as it wastes time in counting and adds unnecessary burdens. Cards are safer as they can be blocked when lost or stolen.
Virtual wallets may be a new addition and it is much more convenient and safe than any other method as it works in all major transactions. Apple Pay, PayPal and Amazon Pay are its examples and these can be connected with your bank account for making payments. This method of paying bills and expenses has eliminated the fear of theft and loss as it is multi-layered protected.
Phone banking and paying bills through their application is another method. It is easy, quick and convenient and in a few clicks bills are paid.
Loyalty program points and gift cards also allow you to shop particularly in specific malls and stores without paying money as points are deducted after using it for shopping bills. Gift cards are worth amounts that are redeemable at stores allowing consumers to shop conveniently.