Automatic Bill Pay is Great!

by | Mar. 15, 2010

Finances

Dear Dave,

What do you think about online bill payments or automatic monthly deductions to pay for everyday bills?

Jay

Dear Jay,

I love them, and I have tons of them. I've got mutual funds that automatically tap my checking account, and all of my utilities are set up to be automatically zapped. This way, I never miss the early payment discounts, and I don't have to worry about payments being late. It's like automatic discipline!

But never, ever allow anyone you're fighting with--like a collector if you're trying to settle a disputed credit card account--to have automatic access to your account. They'll clean you out! I don't have a problem with paying for things like your electric bill, water, cable television or investments this way, though. It's just a good, consistent way to take of business!

—Dave

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