How to Save Stamps, Time and Thousands of Dollars
By setting up automatic payments on your utilities, credit cards, car loans and more, you will never be late again with important payments. Over time your credit score will rise, and you will become a prime borrower that banks wish to offer the lowest rates. This can save you hundreds or thousands of dollars the next time you borrow to buy a car or a home.
This is NOT using your online banking to pay the bills; this is a “set it and forget it” approach.
By using an ACH (Automated Clearing House), you can authorize your bank to send money every month, or authorize a biller to retrieve money each month from your bank account. You can designate a fixed amount or the full payment that is due.
Simply call the customer service number for all the companies you pay monthly, and they will get you set up. It usually requires providing a cancelled check. After sending this check back to them, it may be the last time you need to use a stamp to pay that bill. You also won’t need to sit down with your online banking; the bill will be paid automatically, with nary another keystroke.
There is always a catch – make sure the money is in your account to pay the bill. You will still receive paper or online statements, and these are reminders to record the upcoming payment in your checkbook register on budget.