Prevent Late and Missing Bill Payments by Setting Bill Priority and Using Multiple Bank Accounts

Paying your bills on time is extremely important because the penalties can range from minor to very severe. This means that you might be a charged a late fee, have your service suspended or in worse cases your account could be closed and the related products or services could be completely removed. Keep money in multiple checking accounts in the same or different banks so that you do not have late or missing bill payments. Group invoices by importance so that critical bills like mortgages are kept separate from less important expenses such as recreation. This ensures that you have peace of mind when you are late in making payments or experience a shortage in cash.

Set Bill Payment Priority

You contribute monthly payments for multiple services and products that you need. However, some are more important than others. Give them a higher priority when you put aside money each month. Some examples of critical or high priority bills are your rent/mortgage, auto insurance, health insurance, electricity and internet service. In addition you might also wish to include money for home maintenance or repairs. On the other hand, non-critical services are those that you still need but can live without for a month or two or use less money for. Mark them as lower priority bills and assign the funds last. Some examples of general expenses are grocery, clothing and shoes, supplies for recreation, entertainment like concerts and music, and cable service. Remember to include online services that you use such as Netflix or Hulu Plus for entertainment, Pandora One for music and Amazon Prime for buying and shipping your purchases.

Use Multiple Checking Accounts

After you set you bill payment priority then you can decide to open another checking account at you bank or go to different bank. Assign one for the critical and the other for the low priority. Transfer money into the most important account first. Afterwards you would transfer the remaining funds to the low priority account. Make arrangements to pay bills from the bank or directly at each service provider.

Keep Track of Payments

Record the due date for each bill and check that you have enough funds to cover those that are more important. Check and update your budget after paying each bill. If you fall short on cash or experience a pay cut then you would still have made paid the essential bills first. Thus you would still have peace of mind in knowing that you managed your basic needs.

Avoiding late and missing bill payment is important in keeping your services connected so that you have peace of mind. Keep multiple checking accounts and assign one for high priority bills and the other for low priority bills so that you can manage your payments much easier. Transfer your salary to the most important account so that you pay for those services on time even if you experience a pay cut or shortfall due to unforeseen circumstances. Then you would pay the other bills with the remaining cash. Those are the ones that you can live without them for a few months or don’t mind experiencing a reduction in service for.