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However, this convenience comes at a cost if youre not careful.
Before putting all your bills on autopay, see to it youre notmaking these common mistakes.
Putting the Wrong Bills on Autopay
While autopay is convenient, not every bill should be included.
Fixed bills like rent and mortgage payments are safe to automate because the amounts remain the same each month.
A forgotten subscription or an incorrect medical charge could go unnoticed if the bill isnt reviewed before payment.
Instead of automating every bill, use autopay for fixed expenses and manually pay variable ones.
Otherwise, you risk overdraft fees or missed payments.
Many people assume they will always have enough money, but life is unpredictable.
An emergency expense could arise or your paycheck could be delayed.
To avoid this, regularly check your balances to ensure you have enough money to cover automatic payments.
you’re able to also set up low-balance alerts to avoid surprises.
If you dont review them regularly, you could be paying incorrect charges or experiencingunexpected rate increaseswithout realizing it.
Ignoring your bills could also mean paying for subscriptions you no longer use.
Thats why its essential to review your bills at least once a month.
Forgetting To Update Payment Methods
Expired credit cardsor updated billing details can cause autopay transactions to fail.
Whenever you switch banks or receive anew credit card, modernize your payment details to avoid unnecessary fees.
Setting reminders for credit card expiration dates can help prevent missed payments.
To reduce this risk, spread autopay bills across different accounts when possible.
Using multiple financial institutions can also provide an added layer of security.
Not Setting Up Payment Reminders
Many people set up autopay and forget about it.
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