You should start by setting up automatic drafts to pay all the bills that are a set amount each month. Most companies offer the option of signing up for an automatic draft. It is best to do an automatic draft only with bills that are consistently the same each month. You can either set it up through the utility or loan company, or you can schedule it with your bank. Some companies charge a processing fee for automatic payments, so you may be better off setting it up to be drafted from your account automatically.
Subscriptions to things like streaming services or cable usually fit into this category.
Rent or mortgage payments are another option.
Insurance payments will also fit underneath this category.
Use Your Bank’s Payment Service
To set up a recurring payment with your banking account you need to visit the Bill Pay section of your online banking page. You will set up a profile for the bill that you want to pay online. This profile will include your account number, the address that the payment will be sent to and the company’s name. Then select set up a recurring payment. You will set a monthly date for the draft to come out. To make the process easier for you, you can also set this up on your computer software, so that it automatically updates for you as well.
Some banks may limit the number of online payments you can make without a fee.
Smaller banks may not have the same services as larger banks.
Making the payments from your bank account may be able to save you time.
Determine the Bills You Will Pay Online Yourself Each Month
Next, you should consider the bills that you pay monthly that the amount varies from month to month. Paying this each month will help you to track your expenses more effectively and prevent you from overdrawing your account. First, you need to go into your bill pay account and set up a profile to pay the bill. Then when the time comes to make a payment you will select the one-time payment option, click on the profile of the bill you are paying and enter in the amount. Be sure to record the transaction number the bank gives you as a receipt.
Paying your bills directly to the company gives you a tracking number if there are issues.
You can do this with your utility bills and possibly your credit card bills to make paying off your debt easier.
Plan for Your Annual Bills
The irregular bills that you receive may be handled differently. It would include things such as your tag and registration renewal for your car or it could be a quarterly bill. These bills you can either set up a profile for on your bank or simply visit the company’s website and pay the bill online. Generally, there is not a processing fee to pay the bill online if it is an irregular bill.