I have them set up to automatically get paid through my online bank account. It's set up to send out my payments twice a month so it isn't all coming out of one check. It doesn't matter so much because we aren't living paycheck to paycheck anymore..but it works so I don't bother changing it. The mortgage and anything due on the first of the month is taken out on the 25th of the month. Anything due mid-month is taken out around the 15th. The electric and cable bills I pay as soon as I get them (also done online so I save money on stamps and checks!).
I pay them on payday. When I get paid, I sit down and pay all of the bills I've received since the last payday. This works pretty well because I get paid every two weeks, which means the bills always get paid on time. I think it would be a little harder if I got paid once a month.
I pay all my bills on the due date pretty much. (I set them up in online bill pay like a month ahead of time though).
The reason is to earn as much interest as possible on all my cash. I don't understand paying bills before they are due. Though, before I got everything so automated I probably just paid the bills as they arrived, to keep it simple, and because I am the complete opposite of a procrastinator. My set up is just very different now.
I pay the credit card when I get it because that one can be nasty. Every other bill has a grace period. Even my mortgage has a 2-week grace period so I just pay that one on due date, etc.
I pay whatever is due during the next payperiod. We get paid twice a month and it's pretty set. There are only a few things that automatically withdraw and the rest I set to automatically pay the DAY we get paid so I know it's done. I use online billpay.
We are paid twice a month, so bill due during each pay period get recorded in our account on payday. Most of them are automatic and pulled at different times. My water bill is the only one that isn't automatic. When I get it, at the first of the month, I send a bill pay check to them. Easy!!
I am with monkey mama - i don't understand paying bills before they are due because i like to earn interest on the money. why let another company, billing YOU, earn interest on YOUR early payment?
our mortgage payment comes out automatically every week, as well as our insurance. every time i get our CC bill I set up an automatic transfer for the day before it is due. Every other bill (electricity, gas, mobile, rego, rates and internet) I just pay over the phone on my CC, the day it is due. I've never had a problem if it's a few days late either but generally it's paid the day it's due.
I pay them as I receive them. I've been burned enough times from sliding due dates that I feel like I'm playing chicken when I pay the day its due. Believe me, I understand the earning interest argument - but right now 2K at 1.5% APY for one month will earn you about $0.25 extra. Quarters are important, but it will take a lot of quarters to make up for that one late fee should you miss.
Take home message should be that the best method to pay is the one that you can implement mistake-free.
that's true baselle. but here our rate is 4.8% and any money we have in our account on the 1st of each month takes away from the total of our mortgage, and then interest is calculated on that total - so i try to leave it there as long as i possibly can!
I pay close to the due date, with the reasoning that I should have the use of my money to earn interest with it. The problem with that reasoning is that it worked when I had a checking account that paid interest. The one I have now doesn't, so I'm not gaining a thing by waiting.
I am not concerned about the interest as really it would not be much,all my bills other than my mortgage do not even come to 400 dollars do people who wait so they can make interest have higher bills? I just do not think holding my water bill an extra 7 days is worth it how much interest am I losing by doing this? and how would I figure it out?
All my bills except one are deducted from my checking or credit card about four days before the due date. I do four days to make sure that the payment reaches by the due date,even if it has to wrap around a weekend with a holiday added.
With the autopayment in my checkbook I have a piece of paper in the register that show the due date and the amount due and I use that to create my buffer. I do have overdraft but all my automatic bills for a month add up to $350 so that in my at no time do I go lower checking balance.
The one bill I do pay/plus CC gets paid with the paycheck closest to the due date. With the CC I record the money spent (with the correct date) then I go online and schedule my payment four days out.
I just started auto paying my mortgage, it is pulled from a savings account I set up just for that, each paycheck I just transfer half the payment into the account, I have a small in case cushion.
Good luck finding a plan that works for you. I like getting the max interest but I also pay a little in advance to be on the safe side
I get paid every two weeks. Coincidentally, all my utility bills are usually due shortly after my first payday of month. My rent is due the first of the month, so I usually pay it with the second payday of the month. On long months when I get three paychecks, I make an extra large payment to the credit card or other debt and the rest goes to savings. I make notes about what bills are due when on a plain ordinary monthly calendar that I bought at Big Lots for $2.00. I have tried spreadsheets and other software and it just did not work for me, so that's how I do it. It helps me see at a glance what I need to make room for in my spending until next payday.
I pay my bills online through my bank account (either automatically deducted or paid with a click) as soon as I'm able. For me it's partly a comfort thing--in that I feel like I'm at least half a month ahead in my finances so have a bit of breathing room should some unheard-of emergency pop up and I'd need to delay a bill for a few weeks. Also, many of my bills are for debts that charge interest, so I feel the faster I pay them, the less I pay. One of my bills adds the interest to the balance daily instead of adding a whole month's interest at the end of the month--that really made it hit home for me that every day I don't pay my debts, I'm paying them to hold that debt for me.
Don't know if that's how it actually works, but since my checking account doesn't earn interest, it really doesn't matter anyway.
Personally, I pay my credit card at the beginning of every pay period. That way, it clears the card for me to use again in between the pay periods.
The rest of the bills, all of them are set to email notification. Once I get the email notice, I immediately go there and pay it off with the money that I have budgeted for that bill, which would have saved up enough by then.
So, basically, I pay them off as soon as possible, and move on with my life hassle-free.