Pay by Phone, or whatever you call it, is another one of those decisions you have to make. When you are paying a credit card by automatic payment, many times there is a fee--sometimes as much as $14.99 or higher. That is bad, as that is money that gets slapped to your balance. And for those of us with high balances, that only makes it worse. Out of sight, out of mind, maybe, but that is just a little more each month that is tacked onto an already high balance.
The good side of these pay by phone options is that you know exactly what day the check will hit your bank, so you can plan for it. If I schedule my Discover card payment, for instance, for the 12th of the month, I know I will need that much money in my account to cover that amount, and if I don't have it, I can transfer some money into it for that day.
With a paper check, you don't have the luxury of knowing exactly what day it will hit.
I know--this is a silly problem, but I have been so used to paying my credit card bills by pay by phone for several years. I did it this way as a money managing tool. It made me feel good to know when the checks would hit, and then I wouldn't chance an overdraft. The bad side is it has helped to grow my balance.
Over the next few months, I am going to try to wean myself from this habit, maybe even starting this month. If I can, I'll be around $180.00 less in debt per year for every credit card I have.
No comments:
Post a Comment