6 Bills the Middle Class Shouldn’t Put on Autopay, According to Experts
Written by
Jamie Stone
Edited by
Zuri Anderson
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Autopay is a popular tool that offers convenience and peace of mind, ensuring you never miss a due date. However, many experts warn that automating certain bills can lead to financial pitfalls.
From hidden fees to billing errors, here’s a breakdown of which bills you might want to reconsider automating, and why.
Utility Bills
Stephen Greet, CEO and co-founder of BeamJobs, emphasized the importance of monitoring utility bills. While autopay simplifies the process, it can also cause you to overlook fluctuating charges.
“Autopay might seem convenient, but these charges often fluctuate with seasons or rate increases. If you’re not reviewing them, you could miss opportunities to adjust your usage or dispute overcharges,” he said.
For instance, a spike in your water or electricity bill due to an error or increased rates could go unnoticed for months, quietly eating into your budget. Regularly reviewing these bills allows you to catch discrepancies early, giving you the chance to address them before they cause financial strain.
Medical Bills
Medical bills are notoriously complex, making them a risky choice for autopay.
“Autopay might process a payment before insurance claims are finalized or billing errors are fixed,” Greet noted. “I’ve heard from people who ended up overpaying by hundreds because they didn’t double-check their statements.”
Many medical bills contain duplicate charges or services that should have been covered by insurance. Additionally, third-party billing services often don’t sync perfectly with insurers, leading to inaccuracies in the initial bill.
By reviewing your statements manually, you can flag these errors early and save yourself the headache of securing refunds after the fact.
Credit Card Bills
While autopay ensures you never miss a credit card payment, it can also lead to financial blind spots. Greet stated, “it makes it far too easy to let recurring subscriptions, small impulse purchases or forgotten charges quietly pile up.”
Many people lose track of gym memberships they no longer use, forgotten streaming subscriptions or small purchases that add up over time.
By manually reviewing your credit card statement, you’re not just paying a bill, you’re taking control of your spending and ensuring it aligns with your financial priorities.
Cable and Internet Services
According to Andrew Lokenauth, founder of TheFinanceNewsletter.com, cable and internet providers often sneak in price increases without notifying customers.
“Promotional rates expire quietly, leading to higher charges,” he warned.
When you’re on autopay, you might miss these increases and lose the chance to negotiate better rates. Regularly reviewing your bills ensures you’re aware of any changes and can take action to secure better deals.
Gym Memberships
Gym memberships are another bill to keep off autopay. Many gyms make cancellation deliberately difficult and have been known to continue charging after receiving cancellation requests.
Rates can also change without notice. Lokenauth advises against automating these payments so you can monitor charges and avoid paying for services you no longer use.
Insurance Premiums
Insurance companies frequently adjust premiums, often increasing them without much explanation. By automating payments, you might miss these changes and fail to shop around for better rates.
“Shopping around could save hundreds annually,” Lokenauth noted. Additionally, reviewing your bills manually helps you stay informed about any changes to your coverage.
The Bottom Line
Again, autopay is a helpful tool, but it isn’t a one-size-fits-all solution. For bills that fluctuate, contain potential errors or offer opportunities for negotiation, manual review is essential.
“Autopay might handle the logistics, but it doesn’t tell you whether your spending reflects your priorities,” Greet said.
By keeping a closer eye on these specific bills, you’ll not only save money but also maintain better control over your financial health.
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