by S. Alexander

Created on: June 16, 2008

Paying Your Bills: Organization Tips

Paying your bills on time will keep money in your pocket and save you the hassle of dealing with customer service on past due accounts. It is embarrassing to have to call for an extension when the funds were available to pay your electric bill but you forgot to mail the check. Even worse is the damage one late payment can do to your credit history. Assuming you are living within your budget, you will not be faced with late fees, finance charges or reconnect fees if you follow the advice below for organizing your bill payments.

1. Keep all your financial records in one place. You should create a spreadsheet showing all your monthly expenses with the due date for each recurring bill listed along with the amount due and the total amount owed. If your due date changes slightly each month (as it can with credit cards), you should use the earliest historical due date as your guide.

2. Register for online access with all utility and credit card companies if you have the option. This will allow you to monitor your accounts easily. If you mark your calendar to check these accounts every two weeks, you will be alerted to any changes while there is still time to take action. Regular online review allows you to catch fraudulent charges quickly and helps protect you from identity theft and slamming.

3. Arrange to handle recurring transactions such as phone, electricity, and water bills via automated credit card payment each month. You will never miss a due date this way and as long as you always pay the balance on your credit card in full you can take advantage of cash back programs to actually save money on these necessary expenses. Your mortgage can also be automatically drafted from your bank account and you can make additional payments against the capital online when you have extra money.

4. Many companies will allow you to choose a new due date for your account as a one time courtesy. You can use this feature to space your bills out over the month instead of having everything come due at one time. You can also schedule payments on your credit card balances well in advance of the due dates to avoid last minute check by phone fees. These steps will help protect you from overdrawing your bank account if you are living close to the limit of your income.

5. With the cost of bank overdraft fees at $30 per item, it is more imperative than ever that you keep accurate records of every transaction you make. If it is difficult for you to remember to update your check book every time you swing into the gas station for a cup of coffee or a snack, stop using your bank debit card for those purposes. Instead, visit an ATM once a month and get out enough cash to cover all your incidental expenses for the next 30 days. This will allow you to enter only one transaction in your ledger and also set a limit on your allowance for non-essential purchases.

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