For example, if you set up an automatic payment for your rent every month, you’ll eventually get much more comfortable with what your true spending ability is. So the benefits include not having to worry about missing a payment, but you’ll also begin to not miss the money. When you have automatic payments, you take that thinking away from yourself and your bills are paid on time, every month. The moment you give yourself the option to pay a bill, the moment you become stressed about it and potentially put it off and forget about it. When you set up automatic payments, it’s a true “set-it-and-forget-it” system. There’s not only math behind why it makes sense, but there’s a level of psychology, too. In the book, The Automatic Millionaire, author David Bach talks about the importance of automating your payments-both to yourself and to debt such as a mortgage. The concept of making automatic payments is the same as paying yourself first. You’d merely log into your online account with Verizon and set up an automatic payment (usually done through their “payments” section) by entering your credit card information and selecting a date for it to pay I’ve found that Chase Freedom Flex℠ has a particularly easy-to-use mobile app. An example here would be your cell phone bill. Lastly, you can always plug your credit card information in to pay a bill that accepts cards. A good example of when this would happen is a smaller utility bill (this happens with my sewer bill, for example). If they don’t have your vendor’s electronic payment information, a check will be automatically generated, printed, and sent to the vendor. This means it’ll be paid electronically and takes a day or so to arrive electronically. If your bank has the vendor’s electronic payment information, they’ll make the payment through ACH, as I discussed above. From there, you’d enter the information directly from your Chase bill-such as the account number and the payment address. You’d simply log onto your account and go to the bill pay section. Go through your bankĪnother way to do this would be to set up an automatic payment through your bank, which a lot of people prefer. In many cases, you can select for the payment to be delivered on the due date or several days before. You would simply enter your checking account information and choose a date for the payment to come out each month. You can log on to Chase’s website and set up an automatic payment to be taken out every month when your bill comes. The first method is to go directly to the company, vendor, or creditor you’re trying to pay.įor example, say you have a $400 car payment, with the loan funded through Chase. How do you set up automatic payments?Īutomatic payments have become incredibly easy to set up. This essentially routes the funds electronically from your bank to the company you’re paying (such as your credit card bill). In nearly every case, the payment is made via ACH- Automated Clearing House-which is an electronic payment system. When you pay with a checking account, it’s a little different. In this case, you add your credit card to your account and Netflix charges you every month. For instance, you might do this with your Netflix account. When done with a credit card, automatic payments act simply as a recurring charge on your account. Automatic payments are made with either a checking account or credit card, and in most cases, you’ll do this with the creditor or vendor directly, but it can also be done directly from your bank. When you make an automatic payment, you’re telling your bank to transfer money on a set date and for a set amount, to pay a bill.
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