o-t-y.Review Blog

Just because the payments are mailed late as we forget to send it in time we face late payments. It hurts a lot because in spite of having enough money in out account for payment, we had to undergo late payments as well as other penalties that are levied. It could well had been avoided.

There are a variety of ways to pay bills now, from the traditional method of sending out your payment by cheque or money order through the mail, to stopping at the lender’s offices and making a payment in person, to using the internet or automatic payment options. The right method is simply the one that helps you pay all of your bills on time and is the most convenient.

For accounts that may fluctuate (your utility bills, for example) just write the cheque the same day it arrives and get it back into the mail. For this, you’ll need to have enough money in your checking accounts to pay the bills as they come in, which may take some getting used to if you’ve always been one to live paycheque to paycheque.

If you would like to continue to write cheques and mail them, you just need to get into a routine that will prevent you from sending a payment out late. One way to do this is to prepare all of your cheques at the beginning of the month for each of your creditors. For your fixed-payment accounts, you can physically write the checks and have them ready to mail. Use an accordion file or bill sorter with dates so you can easily see your written cheques. Place them in the order that they’re due, and as soon as the statement comes in, place the cheque in the envelope and put in the mailbox that same day.

If you make enough money and the issue is purely one of being too busy to remember to get your checks in the mail on time- write all of your payments at the start of the month and mail them out, even if they’re not due until the end of the month. If you did this on the first day of every month, you would know all of your bills are paid for the month.

Most creditors and utility companies now allow you to make payments from an automatic withdrawal from your current or savings account. This method is ideal for people who know they have a high enough balance in their current account to pay their bills. Just set each account up to take out the monthly payment a few days before it is due each month, and you can sit back and know your bills are being paid automatically.

The drawback of this method is if you happen to have less money than expected, you will be hit with overdraft fees from your bank. Always keep an eye on your balance and keep an accurate check register to make sure you have enough to cover your outgoing expenses. Alliance and Leicester, however, offer a twelve month interest free overdraft on their current accounts, while they also pay 8.5% AER for anyone who is in credit.

Most credit cards, loan companies and utility companies also have the option of logging into your online account and making a payment that way. You could set aside one hour every week to see what’s due and make payments online. If you scheduled this as part of your “work week” and made it the same time each week, it would become your routine and would not be forgotten. Paying through the internet is also particularly secure and can be automated.

For more information please visit us at http://www.alliance-leicester.co.uk/current-accounts/index.aspx