One of the best things I have done for my bill management was set up automatic bill payments for as many bills as possible.
This way, your bills do not get paid until right before they are due. This leaves your cash in your checking or savings account
as long as possible. Many billers let you set this up on their websites or via a phone call to customer service. Otherwise,
you can find a bank or credit union that offers free online bill pay. Generally, you can pick when the bill payment is taken
out of your account. No more worrying about your payment arriving on time or paying late fees. Not to mention the
hassle of having enough stamps, envelopes, etc!
If you don't already have one, I would suggest finding a good
credit union you are eligible to join. They often offer very low fees for checking and the best loan rates. My credit
union actually has the online bill pay feature included for free when you open a checking account.
Another great perk to look for in a checking account is overdraft protection. If you happen to cross bills with
paychecks, you may end up with a bounced check. Overdraft protection occurs when a person has a line of credit
to write checks for more than the actual account balance. Instead of getting charged for a bounced a check, overdraft
protection will in effect provide the account holder with an instant loan. If you are only talking about a few days to float
that loan, the interest should be much less than any bounced check fees. Not to mention, you will avoid having to re-pay the
original check recipient.
If you have a rewards card, such as Blue Cash from American Express or Discover Cards, you may be able to pay your bills with these credit cards. So, not only do you get to defer payment, but you also earn rewards
for paying your bills! If you do not have a credit card, or would like to open an account exclusively for paying bills, be
sure to compare offers and pick the card that is right for you. Personally, I like cards that give me cash back.
If you are living paycheck to paycheck (as is so common these days), and your debt is getting ahead of you, you
may also want to consider a loan consolidation program. For example, The National Foundation for Credit Counseling or CuraDebt. Beware of debt consolidation companies that promise you everything for nothing. Check out your own Debt Consolidation Calculator to see how long it will take you to get out of debt on your own, as a reality check. The FTC also has some words of wisdom on this subject.
If you are thinking about cashing out your 401(k) to pay bills,
consider the power of compounding interest. To see how much your existing balance could turn into by retirement, click on
the link below.
Financial Calculator
