How to sign up for automatic bill repayments and why?

August 21, 2017

The contemporary world of accelerating technological development requires us to be as dynamic, as possible. Every routine that can be automated should be automated! And this refers to debt repayment and bills as well. Automatisation is a good option both for indisciplined daydreamers and for those who know the value of time and don't want to waste it for same actions every four weeks.

Setting up for an automatic payment on utility and phone bills, car services and loan repayments means that every month on a determined date a certain amount of money will be transferred from your banking account or a credit card to your creditor or vendor. Such transactions are regulated by a system of electronic payments — Automated Clearing House (ACH).

Best loan companies offer automatic payment services that you can easily turn on through your personal online banking user account. To sign up for an automated loan repayment from your deposit account all you need to do is to sign an agreement with your bank to make similar payments every month. Keep in mind that this decision is not fatal and you can change your mind and postpone payments anytime.

When it comes to utility providers and similar vendors you may link your bank account with their payment systems and not to worry about payment delays ever again. If you have enough cash when transaction takes place, of course. Otherwise, if you won’t have sufficient funds on your bank account on the date of automatic write-off, you will have to deal with several fees, such as overdraft fee and returned payment fee with your vendor.

It also makes sense to check whether your automatic payments were successful to avoid unpleasant surprises few months later. Usually, cancellation of automatic bill payments is available anytime, so make sure that you don't continue to pay for the services you no longer need.

Also, signing up for automatic debt reduction with your credit card can be risky in case of a fraud or bank mistake. So, be aware of what is going on with your credit card liabilities. You may learn the key recommendations on how to secure your finances from intruders in our article: “Tips to protect your bank account from fraud”.

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