Nowadays automatic payments are pretty normal. Almost everyone uses them in some way, whether to pay off simple, small bills like your monthly Netflix charge or for more vital payments like utilities or even rent. Many people use direct bank payments to do this, but more and more people are choosing to take advantage of automatic bill pay through credit cards.
As these credit card-based automatic payments become more normal, many people find themselves asking “Should I charge automatic payments on my credit card?” Unfortunately, the answer is rarely clear-cut.
Pros and Cons of Automatic Payments Using Credit Cards
Most everyone knows the pros of automatic payments. It’s easier, and it can save you time and money. Automatic payments mean you don’t have to worry about most late fees, spend money on postage, or keep track of the exact date you need to pay your bill every month.
This makes automatic payments simple and convenient. On credit cards, you get the added bonus of building up bonuses and rewards when you pay off everyday bills. If you pay them off in full every month, it costs you nothing extra.
Unfortunately, many people don’t pay off credit cards every month, which is the first con of automatic credit card payments. That interest and any fees can build up fast and cost you extra money. In addition, many people spend money needlessly this way.
It’s easy to forget about small monthly charges that you never directly see every month, so you may end up subscribed to a service long after you stop using it, especially if you forget about the charge.
Even worse, automatic payments can be difficult to stop. If you decide it isn’t working out for you or even simply want to change cards, you may find yourself struggling to cancel the charge with your company. This time and effort you spend stopping automatic payments can be a real hassle down the road, one that you don’t expect to experience.
In addition, automatic payments still have a margin of error. Too many people find themselves stuck with late fees because of a glitch in the automatic payments that went undiscovered when they took the payment for granted. In the event of bankruptcy, these automatic payments link bills together, making even more fees and a more difficult bankruptcy likely.
How Cleveland Bankruptcy Attorneys Can Help You
In the end, many people choose to enroll in automatic payments using a credit card, but before you do, just be careful to calculate your own risk. If you are careful with your finances and commit to checking your bills diligently, it may be a good option.
If not, there may be better choices for you. If you already are having trouble paying your credit cards, though, this is not a quick fix that will make your financial situation easier to handle. In fact, it may make things worse.
If you are having a difficult time paying your bills every month or are in over your head in debt, there are other options for you to explore to get relief. A good bankruptcy attorney can help you explore your options and find the best one for your financial situation.
If this is something you and your family are currently facing, trust experienced bankruptcy attorney Matthew Alden at Luftman, Heck & Associates to help you. Call us today at (216) 586-6600 for a free consultation.