Why Paying Bills Ahead of Time Is Important

Let’s face it, no one wants to pay bills. But we all know we have to pay bills to keep from incurring late fees or disruptions to our service. But, oftentimes, we take paying bills for granted. That being said, many of us wait on or before the due date (or worst, paying bills after the due date) to pay our bills. However, did you know that paying your bills early have some potential major benefits? Before your next round of bills, consider these reasons to promptly take care of them as soon as they arrive.

Eliminate late fees and penalties. If you have the habit of paying bills late, you have probably a fair share of paying late fees and incurring penalties. Aside from the high possibility of service disruptions when paying bills late, this bad behaviour can hurt your bank account by paying late fees. Late payment of bills can cost you more than you originally owed. Each company has a policy for late payments so make sure you are aware of them. To avoid this kind of problem, make sure to pay your bills early if you have the cash.

Save money on interest. Credit card companies calculate your interest depending on the average daily balance. That means that the higher the balance is, the higher your interest rates will be. If you tend delay the payment or only paying the minimum amount on your credit card, you are simply allowing your credit card company to accumulate added interest on your account which will ultimately cost you more in the long run. This work the same way on your mortgage and car bills. Having this kind of habit will end up in a never ending payment cycle. Avoid this at all costs.

Qualify for discounts. Paying bills can also equate to great discounts on your bills. While it is not a guarantee, there are some establishments who offer discounts to customers who pay their bills in advance. For instance, real estate tax (amilyar) is usually paid at the beginning of the following year (January). However, what we do is to pay it in advance (December) as our local municipal office tends to give discounts for early payors. Make sure to check with the government or providers if early payments can qualify you for discounts.

Peace of mind. One of the biggest benefits of paying bills early is stress reduction. By paying your bills ahead of time, you have the peace of mind knowing that your bills are in order and you won’t be surprised by late fees or service charges. Eliminate unnecessary stress by paying your bills early.

You’ll be prepared of other expenses. Paying your bills early not only gives you peace of mind, but you can also clear up your credit line for other necessary purchases or expenses as well. It also allows you to save that extra money just in case an unexpected expense arise.

Paying bills is boring. That’s a fact. However, bills are already part of our lives and it will never go away whether we like it or not. Settling your bills late on a frequent basis could be detrimental. Hence, paying your bills ahead of time can yield significant benefits on your bank account and can make your life easier in the long run.