Knowing the 10 Bills You Should Never Put On Autopay can save you from financial headaches down the road. Autopay is often promoted as a hands-off approach to keeping your finances in check. By putting your bills on autopilot, you can avoid missed payments, late fees, and maintain a good credit score. It certainly sounds convenient: no need to remember due dates, no manual transactions, and everything is paid off like clockwork.
However, not all bills are created equal. When it comes to managing your money smartly, there are certain payments that you should never set and forget. Some of these bills can fluctuate dramatically, others have unpredictable costs, or they carry the risk of significant billing errors. These can leave your bank account drained or saddle you with hefty overdraft charges month after month.
In this article, we’ll cover 10 Bills You Should Never Put On Autopay and provide practical guidance on how best to handle them manually.
What is Autopay?
Autopay, also known as automatic payments, allows for recurring payments to be automatically drafted from your bank account, savings account, or credit card. It’s a popular feature for handling monthly charges for services like streaming, utilities, or memberships. While autopay can be very convenient for bills that stay consistent, not all bills are suitable candidates for this hands-off approach.
Why Avoid Autopay for Some Bills?
While the autopay option can make life easier, it’s important to know when it’s better to pay manually. Some bills carry high levels of variability or are susceptible to billing errors. Automatic drafts may leave you vulnerable to unexpected charges, incorrect charges, or even fraudulent charges that could derail your financial goals. With bills on autopay, you may not notice sudden fee increases or other inconsistencies, and by the time you do, considerable damage could be done to your financial standing.
10 Bills You Should Never Put On Autopay
1. Medical Bills
Medical billing errors are incredibly common, and automatically paying every medical bill without a careful review can lead to overpaying or covering services you didn’t actually receive. These bills whether from a private practice or a large hospital, can include errors due to human oversight or system issues. Mistakes are especially common in billing codes, leading to incorrect or excessive charges.
With autopay, you lose the chance to review and potentially dispute these errors before payment is made. Additionally, medical bills are sometimes negotiable—you may be able to get a discount by discussing your payment options with the healthcare provider. If your bill is set on autopay, you’ll miss out on this potential savings opportunity. It’s best to manually review and pay your medical bills to ensure accuracy and avoid excessive payments.
2. Credit Card Bills
Credit cards have become a convenient payment method for many, and it’s tempting to set your credit card bills on autopay to avoid missing payment deadlines. However, setting your card on autopay can cause problems if you don’t closely monitor your spending. Automatic payments may also lead to higher finance charges if your statement includes charges you didn’t approve.
Credit cards are vulnerable to fraudulent activity, and reviewing your monthly bill allows you to detect unauthorized charges. Manually paying your bill also gives you the flexibility to make larger payments when possible, reducing your finance charges and helping you get out of debt faster. Whether you’re paying for large purchases or trying to manage credit card debt, always opt for manual payments to maintain control.
3. Utility Bills
Utility bills like electric, water, and gas are notorious for fluctuating based on usage. These charges can vary drastically from month to month, especially during extreme weather seasons. Utility companies may also add unexpected charges like maintenance fees or account adjustments, which you might miss if your bill is automatically paid.
While autopay makes consistent payment easy, it can cause issues if your bill is much higher than expected due to high usage or billing errors. When bills on autopay are higher than anticipated, it can lead to overdraft fees, especially if you’re operating with a limited checking account balance. Paying utility bills manually allows you to track your usage, identify discrepancies, and avoid surprises.
4. Gym Memberships
A gym membership on autopay can seem like a great idea—until it isn’t. Whether it’s for a month-to-month or annual contract, people frequently lose interest in their gym memberships, which means they may be paying for a service they no longer use. Gym memberships are a prime example of expenses that benefit from close scrutiny. When your enthusiasm wanes and visits become infrequent, the charges continue to draft funds from your account.
Furthermore, most gyms make it difficult to cancel memberships, and by having it on autopay, you’re more likely to overlook charges or forget to cancel altogether. Instead, set reminders to manually pay or reassess your need for the membership. Opting for month-to-month payments instead of committing to annual billing can also save you money and provide flexibility.
5. Streaming Services and Subscriptions
Many of us use multiple streaming services like Netflix, Hulu, or Apple Music, which offer subscriptions that automatically renew each month or year. The issue with putting these on autopay is that you may lose track of how many services you’re actually using. Subscriptions can easily pile up, and it’s not uncommon to be paying for services you’ve forgotten about or simply don’t use.
Rather than letting your streaming services run on autopay, it’s wise to manually review your subscriptions each month. Services like Amazon Prime or Apple Watch SE may offer promotional rates that expire, leading to price increases. Reviewing these charges month to month helps you catch unwanted subscriptions and prevents extra charges from unused services.
6. Cellphone Bills
Cellphone plans often come with surprises. Whether it’s extra data usage, roaming fees, or unexpected charges, cellphone bills can be inconsistent. By putting cell phone bills on autopay, you’re less likely to catch sudden increases or incorrect charges.
Some cellphone plans also have billing cycles that do not align well with your pay schedule, potentially leading to overdraft issues if funds are not available when the bill is automatically withdrawn. Review each cellphone statement for discrepancies before paying to ensure the charges align with your usage and plan.
7. Internet Bills
Like cellphone bills, internet bills can vary, especially when internet providers change pricing or promotional offers expire. With internet providers frequently increasing prices, putting your bill on autopay may lead to higher deductions from your account than anticipated.
If you sign up for a promotional rate, make a note of when it ends so that you can monitor your bill for changes. Paying your internet bills manually helps you stay aware of potential increases and allows you to evaluate whether your current plan is still the most affordable plan for your needs.
Auto insurance is an expense that can run into the hundreds of dollars, and it’s typically billed once or twice a year. Since auto insurance premiums can be substantial, having them set on autopay can lead to an unexpected drain on your account—particularly if you have limited liquid cash available.
Auto insurance companies often adjust their rates at renewal. By paying manually, you have the opportunity to compare rates, assess your needs, and decide if switching providers is a better financial move. Paying premiums manually also ensures that you’re never caught off guard by a large deduction from your account.
9. Annual Subscriptions
Annual bills for subscription services can be easy to forget when they’re out of sight for most of the year. Whether it’s for streaming music, satellite bills, or beauty products, annual subscriptions on autopay can result in a significant and often unanticipated hit to your account balance.
If you pay for services annually, you might find that your needs or interests change, leaving you with subscriptions you no longer use. Manually reviewing and paying these bills helps you assess whether these services are still beneficial and worth the cost.
10. Variable Loans and Mortgages
If you have a variable-rate loan or mortgage payments that fluctuate, it’s better to pay these bills manually. Variable loans have interest rates that can change periodically, which means your payment amount can also change. With autopay, you may not notice these changes immediately, which could disrupt your budget plan.
When rates rise significantly, autopay may cause you to make payments at times that aren’t optimal for your finances, potentially leading to overdrafts or other costly errors. By paying manually, you ensure that you’re fully aware of the payment amount and can adjust your budget accordingly.
Conclusion
Autopay has its benefits, particularly for fixed, consistent bills like rent or certain utilities. However, not all bills are suitable for the autopay option, especially those that are subject to variability, billing errors, or potential negotiation opportunities. When managing your personal finance, it’s essential to strike a balance between convenience and control over your monthly expenses.
By manually paying these 10 bills, you protect yourself from unexpected fees, inaccuracies, and the risk of overdrawing your account. This proactive approach allows you to manage your cash flow better, keep an eye on where your money is going, and ultimately work toward your financial goals more effectively.
Also Read: Ways to Drastically Cut Household Expenses: A Comprehensive Guide
FAQs
Medical bills are prone to billing errors, and automatically paying them could lead to paying for services you didn’t receive or were incorrectly billed for. It’s better to review medical bills before making payments.
It’s generally not recommended to put credit card bills on autopay, as credit cards are vulnerable to fraudulent charges. Paying manually allows you to catch errors and unauthorized transactions before paying.
Even if your utility bills seem consistent, there could be fluctuations or unexpected charges. Manually reviewing and paying helps you catch any changes and prevent overdraft issues.
Avoid setting subscriptions on autopay. Instead, pay for them monthly so you can evaluate if you’re still using the service. Cancel unused subscriptions to save money.
