Everyone knows some of the expected benefits of paying your bills before they are due, like avoiding late charges or dealing with surprise fees, but there are other reasons. The following are a few perks you could enjoy if you decide to pay a bill before the due date. Yes, this could be challenging, but it’ll show you why you should readjust your budget to get this done.
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Discounts for You
There are specific discounts you can take advantage of if you pay your bills early. Mortgage companies, credit card companies, tax collectors, health insurance companies, and even your utility providers could offer various discounts. What you want to do is talk to the folks who send you bills. Find out who offers a deal if you pay early. Find out how early you have to pay to get this discount and mark your calendar. These discounts might not seem like much at first, but they’ll add up, especially if you’re able to do this with a couple of companies.
Fighting Interest
One thing you have to fight is interest. This is money you should fight to keep as much as possible, which means paying off debt quickly. This is especially true about debt that comes with substantial interest rates. Some folks promote the importance of paying bills on time, but if you want to kill debt faster, then pay earlier. You might be able to pay twice in your bill cycle, and that’s going to help. When paying early, make sure you’re paying in this new pay cycle and that the payment didn’t count for the last payment cycle.
Build a Cushion
Mistakes can happen all the time, so paying your bills early can give you a little cushion. For example, if you send your payment through the mail but the mail is delayed, paying early gives you a little extra time to deal with this delay. Sometimes, online payments take some time to post. This is usually due to the time the payment was made. If you make a payment outside business days, then your payment might not post quickly. Sometimes, your bank can cause some delays that could throw you off if you made your payment on the day it was due.
December Trick
Okay, this is for those who have a mortgage or live in a state where you can deduct living expenses, such as rent. What you’ll be doing is paying your January mortgage payment or rent in December rather than January. Get a receipt of this transaction, and be sure to call your mortgage company to make sure this payment is processed in December. The reason you’re doing this is to get a bigger tax break this tax year. Do this every year so that you get a little more back.
Peace of Mind
Paying your bills gives you peace of mind. It’s especially true for those planning on traveling for an extended period of time. You’d be surprised how much that due date messes with your mind. You can’t spend like you normally might because you know you’ve got that bill to take care of. If you start to pay your bills off earlier, then you’ll be free to do whatever you want for the rest of the month. That kind of freedom is always going to feel good. You could even spread your bills out by paying some bills early and paying other bills later. This could help free up your cash a little more evenly throughout the month. Figure all of this out before you start this payment schedule to make any mistakes.
As you can see, paying off your bills early, even if you only pay a few off, is a good thing. Doing this could help you eliminate some of your debt faster, and that’s going to free up your cash even more.