Paying Early vs. On Time

Bills usually arrive a week or two before the due date. Some already follow a practice on when to pay their bills – they could be paying on time or they could pay early before the due date. There are others who opted to pay a day or two later as they have some financial adjustments to make so that they could pay the bills even though they are late.

It is already an established fact that paying your bills late will eventually have financial consequences. There are states that have very strict rules on the due date of taxes. If you miss just a day of payment, an interest rate will be added without any questions.

However, there are those who face a dilemma on how to pay their bills even if they are financially stable. There are those that support the idea of paying the bills on time as it would give the consumer more time on how to use the money. On the other hand, there are those that support in paying the bills early for the psychological effect. Since you have already paid your bills, you can just sit back and relax as the essential services in your home will continue.

. Automation

One of the best things technology has given us is automation not only in manufacturing but also in our financial needs. Almost every utilities and services today offer automated charging on the bank account or the credit card account of the consumer. The consumer on the other hand could just check their email or call the customer service to ensure that the payment goes through. By paying the bills on time, the consumer will no longer have to fear disconnection.

But paying the bills through automation may not be a bright idea if you are not stable in your finances. Another reason why you should reconsider automation is the interest rate that could come if you paid late. But most companies that provide us with the basic services don’t place interest rate for late payments. That means automation will just be for nothing. You can even wait for a day or two after the due date to pay your bills without incurring additional interest rates.

The smart way for automation is to use this feature only if the company has late fees. If the company doesn’t have any late fees, it’s better to wait a day or two. If the company don’t have any automation feature but has late fees, paying them early should be your priority. A business day or two will ensure that you won’t have to pay for the late fees in the next bill.

. The Psychology in Paying Early

There are those that have preferred to pay their utility bills early because it will not only save them from late fees but also give them the “psychological ease” for paying early. This is actually a good argument for paying early. But the other side of this psychological ease the stress it will cause if the individual will be forced to wait for the due date. There are others who, instead of psychological gain, became too anxious in paying their bills. They may have paid their bills before the due date, but they would still provide an extra effort to check if they have actually paid on the due date.

Bottom line – paying your bills early may provide you the psychological ease that you need but do not let it consume you. Automate only to companies that charges late fees or pay them in advance if they don’t have that feature. Paying early or paying your bills on due date have its advantage and disadvantages. You just have to be aware of your options so that you can budget your finances properly.