GOBankingRates works with many financial advertisers to showcase their products and services to our audiences.
These brands compensate us to advertise their products in ads across our site.
This compensation may impact how and where products appear on this site.
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information.
you’re free to read more about oureditorial guidelinesand our products and servicesreview methodology.
However, many experts warn thatautomating certain billscan lead to financial pitfalls.
Utility Bills
Stephen Greet, CEO and co-founder ofBeamJobs, emphasized the importance of monitoring utility bills.
While autopay simplifies the process, it can also cause you to overlook fluctuating charges.
Autopay might seem convenient, but these charges often fluctuate with seasons or rate increases.
Medical Bills
Medical bills are notoriously complex, making them a risky choice for autopay.
Autopay might process a payment before insurance claims are finalized or billing errors are fixed, Greet noted.
Ive heard from people who ended up overpaying by hundreds because they didnt double-check their statements.
Many medical bills contain duplicate charges or services that should have been covered by insurance.
Additionally, third-party billing services often dont sync perfectly with insurers, leading to inaccuracies in the initial bill.
Promotional rates expire quietly, leading to higher charges, he warned.
When youre on autopay, you might miss these increases and lose the chance to negotiate better rates.
Regularly reviewing your bills ensures youre aware of any changes and can take action to secure better deals.
Gym Memberships
Gym memberships are another bill to keep off autopay.
Many gyms make cancellation deliberately difficult and have been known to continue charging after receiving cancellation requests.
Rates can also change without notice.
Insurance Premiums
Insurance companies frequently adjust premiums, often increasing them without much explanation.
By automating payments, you might miss these changes and fail to shop around for better rates.
Shopping around could save hundreds annually, Lokenauth noted.
Additionally, reviewing your bills manually helps you stay informed about any changes to your coverage.
The Bottom Line
Again, autopay is a helpful tool, but it isnt a one-size-fits-all solution.
For bills that fluctuate, contain potential errors or offer opportunities for negotiation, manual review is essential.
More From GOBankingRates
Share This Article:
