7 Ways to Make Sure You Always Pay Bills on Time

You know that paying your bills on time is important to avoiding late fees, but sometimes you need some extra support to make it happen.  

7 tips to make paying bills on time easier 

Many factors can make timely payments challenging, from living on a limited income to overspending on nonessentials. Making a few simple changes, such as opening a second chance checking account or enrolling in direct deposit, could give you more control over your money wherever you fall on the spectrum.  

1. Consider opening a second chance checking account 

If your income just doesn’t seem to keep up with your bills, the last thing you need is to be charged an extra fee for having too little money in your account.  But that’s exactly what can happen with many traditional checking accounts.  

Second chance checking accounts are designed to make banking easier for low-income families, as well as other people who may have trouble opening a traditional checking account. They usually have lower fees and lower minimum balance requirements.   

2. Enroll in direct deposit  

With direct deposit, your income is automatically transferred to your account. There’s no need to cash a paper check in person. This makes receiving your paycheck, government benefits or pension – and using it to pay your bills – more convenient.  

Enrolling in direct deposit could also help you get your money up to two days sooner, depending on your bank. Some banks will also reduce or waive their monthly service fee if you direct deposit a certain amount of money each month.  

3. Set up automatic bill pay 

If mailing checks, logging into online portals and visiting businesses in person to pay bills aren’t working well for you, it may be time to consider automatic bill pay.   

Most banks offer automatic bill pay, which lets you set up your regular bills to be paid directly from your bank account on a specific date each month. You can use it for utilities, mortgage payments, car payments and more.  

Automatic bill pay may take a few minutes to set up at first, but it could save you time and help you avoid unnecessary late fees in the long run.  

4. Opt for an account that helps you avoid overdrafts 

Unexpected transactions that exceed your checking account balance can cause an overdraft, which may lead to fees that make it more difficult to pay your bills on time.  

Some checking accounts limit overdraft fees, which can soften the blow. However, opting for a checking account that doesn’t allow any transactions above your available balance could be a better option.    

5. Take advantage of budget tracking tools 

Some mobile banking apps have baked-in budgeting tools that can send alerts to help you remember your upcoming bills.  

Using bank-provided budgeting tools may also help you identify opportunities to save, helping you reduce overspending and set aside more money for bills.  

6. Consider using a separate bank account for bills 

Do you find yourself buying takeout or other nonessentials with money meant for bills? Whether this happens due to temptation or by accident, you might benefit from transferring your bill money to its own account.  

By creating a dedicated bill-paying account, you draw a financial “line in the sand” that makes impulse spending harder. It’s a simple strategy but could have a surprisingly large impact on your financial habits overall.   

7. Turn on mobile banking alerts 

Many banks send real-time alerts for information and transactions, such as:  

• Upcoming bill due dates 

• Low account balances 

• Large withdrawals 

• Successful payments 

• Overdrafts 

• New deposits 

These alerts allow you to transfer funds to cover bills when needed, make more informed spending decisions, and report fraudulent transactions as soon as possible.  

You can avoid too many automated messages by choosing the type of alert you’re most likely to read – text, email, or push notification – and changing your preferences in your banking app to match. Next, decide which alerts are the most relevant to your goal of timely bill payment and consider disabling the others.  

Making timely payments opens doors  

Paying can help you keep more of your hard-earned money by helping you avoid costly late fees. Staying proactive about paying your bills may also improve your creditworthiness, which could lead to more favorable terms for mortgages, personal loans and other borrowing opportunities in the future.  

Best of all – practicing even one of these simple strategies to pay your bills on time could bring you much-needed peace of mind and help you form healthier money habits to last a lifetime. 

Disclaimer: Article content is intended for information only. It may not reflect the publisher nor employees’ views. Consult a financial professional before making financial decisions. Publishers or platforms may be compensated for access to third party websites.