Pros and Cons of Auto-Pay
Always ask yourself if what you're doing today is getting you closer to where you want to be tomorrow.” — Paulo Coelho
Auto-pay or autopay...
AUTOmatic PAYment
...is the monthly payment for a recurring good or service that is automatically deducted from a checking account or charged to a credit card. So, instead of writing a check to your utility company every month, or logging in online to pay for your monthly face cream, you would authorize the company to periodically withdraw a set amount on a regular basis, usually monthly.
Here are a few reasons why auto-pay may be beneficial for you:
Auto pay is a great way to set and forget your bill payments, so you won't miss one and possibly end up with a late fee. In this busy world, we all need one less thing to remember.
Often companies offer discounts when you set up automatic payment withdrawals. Whether it be a set amount or a lower interest rate, any bit of saving helps.
When you have your bill set to auto-pay, there won't be much wiggle room for frivolous spending in your bank account.
On the other hand:
When you have your bill set to auto-pay, there won't be much wiggle room. This can be detrimental if you don't have margin in your checking account.
Additionally, auto-pay often takes advanced notice to turn off in case you need those funds for something else, or need them withdrawn at a later date.
So what's our final conclusion on automatic payments? Do what works best for you in your current situation, but if we operate with a mindset of abundance and are faithful in finance, auto-pay can give us peace of mind and even save us a few bucks!
Do you have any bills that are automatically paid each month? Why or why not? If you do, how much are you saving?
