When it comes to paying bills, many people cannot imagine returning to paying and sending bills via the U.S. Postal Service. But, the “turn it on and forget it” nature of automatic payments can create zombie payers who no longer challenge or review the details of bills. Here are some ideas to keep this from happening to you.
Create a list. Make a list of the companies you authorized to use automatic payments to pay your bills. Include in the list the card or account each company uses for the automatic payments, as well as payment amounts and frequency. If you use credit and debit cards to pay companies, record the expiration date, in case you need to update any company that has your card on file. When there is a change in a card or bank account, you will be able to consult the list to find the companies you need to notify.
Watch for fees. Make sure the bill payment system you’re using is low cost or no cost. Some companies will charge you a fee for automatic payments. If your biller wants to charge you, pay them with a traditional check.
Beware of price creep. Paying for a product or service automatically can create a situation where you do not notice when your price changes. Monitor your on-going payment amounts so you are able to question any price increase or discontinue service (if applicable).
Review underlying bills. Along with automated bill payments is the vendor’s desire to stop sending hard copies of your bill. However because you’re not receiving a bill, you may be unaware of changes. You may want to opt to continue receiving email or paper billing statements (if possible) so you can verify that your payment has not changed and there are not additional fees or errors.
Take care to review your accounts and statements to avoid zombie paying, and in turn protect yourself and keep your finances in your control.