6 Sneaky Autopay Bills That May Be Charging You Extra Fees

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Automatic payments have become a popular way to pay bills. This tool offers a convenient way to make sure bills are paid on time without the hassle of manual processing. However, this convenience can sometimes come at a hidden cost.

Unfortunately, some autopay setups may include extra fees. Here are six types of autopay bills where sneaky charges often lurk and strategies to avoid these unnecessary expenses.

1. Subscriptions Services

Subscription services, from streaming platforms to software, have integrated seamlessly into daily life. Yet, they are prime candidates for unnoticed charges. Companies often raise prices or add fees that go unseen by consumers who don’t regularly check their statements.

How To Manage Costs

• Regular Review. A monthly review of your bank statements can uncover changes in billing amounts.
• Usage Assessment. Evaluate the utility of each subscription. If it’s not being used enough, consider canceling it.
• Annual subscriptions. Opting for annual payments can sometimes offer savings over monthly billing.

2. Cell Phone and Internet Bills

Cell phone and internet service providers are notorious for their complex billing structures. Promotional rates expire over time, and additional fees for services or equipment may be added without clear communication.

How To Manage Costs

• Negotiation. Contact your provider regularly to discuss your current plan and ask if any promotions or adjustments are available to reduce your bill.
• Bill analysis services. Utilize third-party services that analyze your bills to identify potential savings or unnecessary charges.
• Equipment purchases. Consider purchasing rather than renting equipment (like modems) to avoid recurring monthly fees.

3. Credit Card Memberships

Credit card companies often offer benefits for an annual fee. However, these fees can increase, or new ones may be introduced. Also, not utilizing the card’s benefits to their fullest can mean you’re essentially paying extra.

How To Manage Costs

• Benefits utilization. Make sure you’re fully utilizing all the benefits your card offers. If not, consider switching to a no-fee card.
• Fee waivers. Contact your credit card issuer to discuss the possibility of waiving the annual fee, especially if you’re a long-standing customer.

4. Utility Bills

Utilities such as electricity, gas, and water can have variable charges based on usage, but they may also include fees for services you’re unaware of or don’t use. Moreover, rate increases can occur without direct notification.

How To Manage Costs

• Energy audit. Conduct or request an energy audit to identify ways to reduce consumption and lower your bill.
• Bill comparison. Regularly compare your bill details month-over-month and year-over-year to spot any unusual increases.
• Alternative providers. If possible, shop around for alternative utility providers who offer more competitive rates.

5. Gym Memberships

Gym memberships often have annual fee increases, maintenance fees, or penalties for infrequent use. These can all add up, especially if you’re not regularly attending.

How To Manage Costs

• Membership review. Evaluate the cost versus how often you use the gym. Switching to a pay-per-visit model or utilizing free exercise options might be more cost-effective.
• Fee negotiation: Don’t hesitate to negotiate fees or ask for discounts based on your usage patterns.

6. Bank Accounts and Overdraft Protections

Many are unaware that their checking or savings accounts might have monthly maintenance fees, minimum balance requirements, or overdraft fees that can quickly accumulate.

How To Manage Costs

• Account requirements: Make sure you understand all the requirements and regularly monitor your accounts to ensure compliance.
• Overdraft settings: Opt into or out of overdraft protection based on your financial habits to avoid unnecessary fees.

Bottom Line

Autopay offers convenience but requires a vigilant approach to avoid sneaky fees that can accumulate over time. By implementing the strategies mentioned for each type of bill, you can safeguard your finances against unwarranted charges.

Editor's note: This article was produced via automated technology and then fine-tuned and verified for accuracy by a member of GOBankingRates' editorial team.

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