One of the reasons consumers get a bad rap in their credit profile is because they fail to pay their bills on time and meet their regular monthly obligations. In many cases late or missed payments are simply due to an oversight on the part of the consumer who failed to keep track of important due dates. This common mistake can be eliminated completely if consumers would start incorporating a simple calendar into their financial life.
When you are late making a bill payment, you are essentially breaking your end of the agreement you signed with your creditor. Late bill payments will be reported back to the credit reporting agencies and as a result you will begin to
see your credit score decrease. Low credit scores will make it difficult for you to secure financing, good auto insurance rates, and potentially cost you a job. You will also have to pay higher fees and interest rates on financing you do get and the fees and penalties from your creditors for late payments can be more than you can truly afford.
Solutions for On-Time Bill Payments
There are two simple ways for consumers to get back on track with timely bill payments. Each has its advantages for consumers and is beneficial for your financial status. Consider each of the solutions and how they can fit into your life.
1. Automated Bill Payments
Automated bill payments are a relatively new thing thanks to the Internet. Many banking institutions allow you to set up automated payments to various creditors on a set time of each month. These automated payments take the work and the effort out of a person’s daily life because once the payments are established, the reoccur each month automatically. In most cases, automated payments do not cost any additional fees. The only thing a consumer needs to do is ensure there is enough money in the bank each month to cover your expenses.
2. Personal Finance Calendar
When creditors can not be paid by automated payments, it is important to set up a manual financial calendar template where you notate the due dates of all of your various bills. By using a monthly calendar, you have the at-a-glance ability to remember exactly when your bills need to be paid. It can prevent your accidentally forgetting a financial obligation which can in turn ruin your credit.
Maintaining good personal financial habits is the basis for establishing a stable financial future. Tracking your payments each month keeps you in touch with the money you are sending out. You can use your budget along with your calendar template to plan out your money matters well in advance and prevent lost money in fees and penalties when your bills go unpaid. Make a habit of sitting down with your finances each week and review statements that have come in the mail for accuracy. Calculate your checkbook and figure your spending allowances according to your income. The more attention you pay to your personal financial matters, the more you can correct mistakes when they occur and find better ways to make your money work for you.