Autopay is convenient but not always the best option. Your bills aren’t always the same every month and sometimes, sudden changes can add up quickly. When payments are sent through automatically, there’s a high risk of errors or strange charges. You could even have to pay for things you don’t want. The closer you look at your bills before you pay, the more control you have of your money. It catches mistakes and saves you from surprises.
Here are 9 bills that you shouldn’t autopay and why it may be dangerous.
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Credit Card Bills
Using autopay on credit cards is risky if you don’t pay attention to the balance. There are always unexpected fees or errors that go unnoticed by you. It’s better to go over each statement one at a time. This way, you can budget for next month or discover fraud early.
Utility Bills
Electricity or gas bills may change greatly from month to month. High usage during extreme weather can cause a sudden spike. If the bill is on autopay, you won’t see these jumps until the last minute. Paying it manually gives you an opportunity to look for strange charges.
Subscription Services
Autopay subscriptions are surprisingly easy to lose track of. Streaming, gym memberships, and the rest add up quickly. If you’re not using them, you’re wasting money. Checking these bills monthly helps you decide if you need each service or not.
Cable or Internet Bills
Cable and internet providers sometimes raises prices without notice. If the bill is on autopay, you might not even be aware you’re paying more. If you review these bills, you will be able to identify any changes. Then you can call and try to negotiate with them if needed.
Insurance Premiums
Prices on insurance such as health, auto, or home insurance might change unexpectedly. Every now and then, companies revise their rates, adding fees or modifying coverage. Checking your premium on a regular basis lets you see if things have changed and if you should move to another plan.
Phone Bills
Phone bills can include fees such as roaming charges or data overages. When it’s autopay, you’ll be paying for things you didn’t even know you used. By manually paying, you are able to catch these charges and manage your use.
Property Taxes
Property taxes don’t have to be paid monthly but when they are owed, they can be huge. A large withdrawal would have a dramatic impact on your account. Manually paying it by yourself lets you plan for those higher installments.
Loan Payments
Student or personal loans might be subject to variable interest rates or charges. With autopay, you may be paying more without knowing why. By checking these payments you can know how much interest you are racking up and whether there are any unreported fees.
Water Bills
Water bills can fluctuate based on usage, especially if there’s a leak. The unexpected bill that’s on autopay could be for water you didn’t even use. When you manually pay it, you can monitor the spikes in usage and fix leaks before they become a major problem.
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