There are many benefits in automating your finances like credit card payments and other bills. Aside from not being late on payments because of automatic debit, you also reduce the number of errands you need to do. However, despite the convenience of automatically paying your bills, this is not the best thing for everyone.
Here are three reasons you might think twice in automating your finances:
You do not have a steady income.
Are you just starting a small business or doing freelance jobs and still building a client base? If you do not expect to earn steady income in the coming months, it is wise to pay your bills the traditional way. This will keep you from getting penalized for insufficient funds and having the inconvenience of damaging your credit score. Automate your finances if you have already built a market and your business already picks up.
You want to reduce the possibility of paying for purchases you did not make.
If you know that your credit card bills will automatically be paid monthly, you might get used to not having to check your statement of account. Errors in credit card statements do happen and these can be overlooked if you will not be too conscious in checking your bills since paying them will not require you to go online.
Your providers change their fee rates.
Another reason you might put off automating your finances and bill payments is if your providers increase their rates. With being secure your bills will be paid on time, there might be instances when a provider, say for internet connection and membership fee changes its fees and you did not notice it, you will be paying more without even knowing it. On the other hand, if you pay it online yourself and realize these providers are charging higher, you have the option to cancel your subscription.
Automating your finances does offer rewards but it is not for everyone. If you really want to give a try, you can try this on some of your bills but not all.