While auto-pay makes life easier, it is not for people trying to stay on top of their spending. It is also a great option for people who are forgetful to avoid the late fees on credit payments. What better than not having to worry about payments on time?
There are a number of reasons to not use auto-pay. One is that cash flow management becomes difficult, you become passive about your financial responsibilities, you don’t cancel subscriptions, many scams do happen because of auto-pay ignorance. All of these aren’t big things but are enough to take things into your own hands.
Dealing With Multiple Cards
If you have multiple credit cards, then keeping a track of all the payment dates and expenses can become cumbersome. To deal with that in an easier manner, change the credit card due dates for all your cards to the same day each month.
This makes it easier to remember and also handle. You can take out a single day to pay off all the cards, review your expenses, manage cash flow, and create a budget for the upcoming month.
This also lets you become more proactive with your money. Because you are manually paying off your cards, you see all the expenses – necessary or not – you see where the issue lies. If you don’t look, you won’t find an issue if you are overspending. It acts as a reminder call to be responsible with your money.
Setting a Day Out
Now, that you know you have to set a date aside to deal with this. It is a good idea, even if you don’t have multiple cards. Add the payment day to your calendar and make it a recurring reminder so that you don’t have to create a reminder every month. Include an email alert with the scheduling so that you will be reminded in a more active manner.
Card issuers usually send statement alerts to you, if you have set it to be so. I advise you to do so. It will help you be on top of the payments.
Document Your Payments
When you make a payment and get the confirmation, note down the paid amount. Do that for every card that you have. I usually suggest making a list of all your expenses, this gives you all the data you need to improve your financial health.
But, for the purpose of being mindful of your card payments – note down the total amount you pay for each card every month. This allows you to double-check the amount and make sure you aren’t paying for something you aren’t supposed to.
It doesn’t take a lot of time to manually make your payments. 10-15 minutes out of your day each month is all you need, but the benefits are great. You are aware of the cash flow, you go through your expenses, you can keep your budget updated, and you can be sure that you are paying exactly the amount that you are supposed to.