Over 15 billion checks were written in 2009. If you write checks make sure you get a checking account with no monthly fees. If you are struggling paying bills there are several ways to save money when paying your bills.
Paying bills by check can be costly. If you write 10 checks per month, it costs you $4.40 per month or $52.80 per year plus the cost of ordering checks which can range from $12-$40 per order or $144-$400 a year. If you buy money orders to pay your bills the average cost for a money order is $1.20. If get 10 money orders per month, it costs you $12 or $144 per year. Here are 9 ways to save money paying your bills.
1. Online. Use online banking to pay bills online. Make sure you get a checking account that includes the online bill payment service for free. Online banking can save you between $50 - $144 a year.
2. Many companies offer the option of paying bills by phone for a small fee. Only use this option if your payment will be late using postal mail. Pay $5-$10 versus a $25-$30 late fee.
3. Transfer. You can transfer your credit card balance to a credit card with a lower interest rate. Be cautious with transfers and make sure you pay the full balance before the promotional period expires.
4. Automatic. You can use automatic deduction to pay your bills. Make sure you have enough money in your account to cover the bills each month. Request an email confirmation for each bill paid.
5. Extra. Send more than the minimum monthly payment to save money on interest and finance charges each month. You can also send multiple payments during the month.
6. Consolidate. Get a debt consolidation loan to combine all debt into one payment. Use caution and make sure you use a reputable company. Request monthly confirmations for each bill paid. Don’t get a home equity loan to consolidate debt because if you miss a payment you may lose your home.
7. Ebilling. Get your bills online and save money. Some companies now charge for sending bills by postal mail.
8. Verify. Verify your monthly bills to make sure no errors appear on your bill. Also verify all charges. Read the fine print and ask questions. Many companies offer discounts or specials that they do not advertise. See which ones you may be eligible for.
9. Card. You can pay bills using your debit or credit card to save money on check writing fees. Check to see if the company charges a fee for paying by debit or credit card. If paying by credit card make sure you pay the amount charged in full when your credit card bill arrives to avoid interest and finance charges.
Showing posts with label paying bills. Show all posts
Showing posts with label paying bills. Show all posts
Sunday, January 2, 2011
Tuesday, August 17, 2010
Are You Still Using Checks
I still use checks and according to MSN Money I am one of a few who still do. My first preference is using money orders. Your personal information is passed around as many times as we breathe air during a 24 hour period which puts you at an increased risk for identity theft.
Whole Foods has begun refusing checks as payment in some of their stores and has plans to expand the policy to other stores. Banana Republic also began a no check writing policy that went into effect in the fall of 2009.
I liked it when you had to go to a bank to make transactions and the only means of payment was writing a check or using a credit card. I use electronic transactions such as a debit card or credit card but prefer to pay for items with cash.
I don't like being forced to use a particular payment method such as the automated check system that scans your check and accesses your account immediately. This prompted me to start using money orders again, that way I don't have to worry about anyone accessing my bank account. I don't do online banking and don't setup automated payments.
I know checks are going to be retired but I am holding on for dear life and will continue to use them until I am forced to use another method of payment.
Some consumers are afraid or uncomfortable using ATM and debit cards. Others, are hesitant to use them for fear of becoming a victim of identity theft. I wonder, if those who write checks now will no longer be able to write checks in the future and don't want to use a debit card or credit card, what payment method will banks provide for them? Only time will tell what the future holds.
If you are a check writer like me, write your congressman and request that businesses accept checks as a form of payment. I will be writing my letter right along with you.
Whole Foods has begun refusing checks as payment in some of their stores and has plans to expand the policy to other stores. Banana Republic also began a no check writing policy that went into effect in the fall of 2009.
I liked it when you had to go to a bank to make transactions and the only means of payment was writing a check or using a credit card. I use electronic transactions such as a debit card or credit card but prefer to pay for items with cash.
I don't like being forced to use a particular payment method such as the automated check system that scans your check and accesses your account immediately. This prompted me to start using money orders again, that way I don't have to worry about anyone accessing my bank account. I don't do online banking and don't setup automated payments.
I know checks are going to be retired but I am holding on for dear life and will continue to use them until I am forced to use another method of payment.
Some consumers are afraid or uncomfortable using ATM and debit cards. Others, are hesitant to use them for fear of becoming a victim of identity theft. I wonder, if those who write checks now will no longer be able to write checks in the future and don't want to use a debit card or credit card, what payment method will banks provide for them? Only time will tell what the future holds.
If you are a check writer like me, write your congressman and request that businesses accept checks as a form of payment. I will be writing my letter right along with you.
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