Missing a monthly bill payment can deny you access to a service in the short-term but in the long term it could have some devastating effects on your credit score and future attempts to get a loan or mortgage.
I have been a victim of delayed bills, a payment that I was supposed to make to allow me access to a service, I forgot about it until I got an email that I had not paid. Unfortunately when the message came I did not have the money so I had to wait for some time to clear the bill. I knew I had messed up, little did I know that this would haunt me forever. My credit score dived and in the future when I tried to acquire a loan, I was given the option of paying huge interest rates or forego the loan.
I learned a lesson; it is paramount to manage your monthly bill payments. Late payments or failure to pay your monthly bills will not only cause you to be denied access to the service or goods to which you have subscribed to, but can also lead to penalties which might affect your ability to access future credit. Here is how you can manage your monthly bills effectively:
1. Keep a record of all your monthly bills, indicating the date when they are due. The record should be kept in a location that you can easily find, also ensure that you have set up reminders; you could even invest in an app that will remind you when bills are due.
2. Linking your monthly bills with your credit card or your bank account will not only ensure that the bills are paid but also that they are paid on time. All that you have to do is make sure that the accounts have the required funds, otherwise; you might be heavily penalized by your bank if at the time of payment there are insufficient funds.
3. Subscribe to bill reminder services: Most service providers have a platform where they remind their customers when their bills are due. If the service is not automatic and you are required to subscribe to get the notifications, make sure you subscribe. Some even remind you every five days; this ensures that you are updated on any developments and guarantees that the account where the bills are supposed to be deducted from has enough funds.
Effective management of your monthly bills will not only ensure that you continue enjoying the benefits for which you are paying, but also help in building a sound credit score.
Disclaimer: The above information is general in nature and not intended to be financial advice. You should consider seeking professional advice before following any suggestions in this blog/website.