Sunday, January 02, 2011

Save Money Paying Bills

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.


good nelly said...

I think it's best to take out a low interest debt consolidation loan. This is what I did last year. I was not able to pay all the bills. My cousin sister suggested me to take out a debt consolidation loan. Later, I found that the interest rate on the loan is lower than that of credit cards. I only had to make a single monthly payment each month. Didn't have to worry about multiple bills anymore. Whew, what a relief it was.

priyanka saxena said...

i am so much happy to read that and that is a nice blog related to money saving ..
Debt Management Plan

The Debt Reducer Expert said...

Hi Priyanka, thanks for your feedback.

The Debt Reducer Expert said...

Hi Good Nelly, thanks for your feedback. I am glad that option worked for you.