Why You Should Think Twice Before Putting These Bills on Autopay

When it comes to managing your finances, setting up autopay can be a convenient way to stay on top of bills and save time. However, not all bills should be put on autopay, as it can lead to unexpected expenses and budgetary challenges. Here are some items you might want to consider before automating your payments:

1. Variable Expenses

Bills that vary month to month, such as utilities or credit card bills, may not be the best candidates for autopay. Setting a fixed payment for variable expenses could lead to overdraft fees or missed payments if the amount due changes unexpectedly.

2. Free Trials and Subscriptions

Signing up for free trials or subscriptions with autopay can sometimes lead to forgotten payments and unwanted charges. Be sure to review your subscriptions regularly and cancel any services you no longer use or need to avoid unnecessary expenses.

3. Membership Renewals

While memberships can offer convenience and savings, automatic renewals can catch you off guard if you forget to cancel. Make sure to keep track of your renewal dates and assess whether the membership is still worth the cost before it renews.

4. Overdraft Fees

Putting bills on autopay when your account balance is low can result in overdraft fees. Be mindful of your account balance and schedule payments accordingly to avoid these costly charges.

By being selective about which bills you put on autopay, you can avoid unnecessary expenses and better manage your finances. Remember to review your automatic payments regularly and make adjustments as needed to stay on track with your financial goals.