5 Utility Bill Mistakes That Are Draining Your Bank Account on Autopay

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Autopay is supposed to make life easier. You set it, forget it, and never worry about missing a bill. But when you’re using autopay for utility bills, it could sometimes cost you more money than you realize.

That’s because when these bills get paid automatically, you pay less attention to how much is actually coming out of your pocket each month.

Here are five common utility bill mistakes that can drain your bank account when everything is on autopay.

You Don’t Review Your Monthly Bills

Just because your bills are on autopay doesn’t mean you should forget their existence. If you don’t regularly review your monthly bills, you might not notice utility rates change, usage fluctuates, or added fees until months later. For example, a $15 price increase that you don’t catch for six months is basically $90 down the drain. So, if you opt into autopay, still make it a habit to skim each bill once a month.

You’re Paying for Services You Don’t Use Anymore

Utilities don’t stop billing just because you don’t use the service anymore. For example, even if you stopped watching cable TV or no longer need a landline, you’ll still get charged until you cancel the service.

This happens a lot with internet add-ons or temporary upgrades that were never removed. Because the bill is paid automatically, you might not remember to cancel the service or reconsider whether you still need it.

At least once a year, check every utility line item and ask yourself if you’re actually using it. If not, cancel or downgrade.

You’re Missing Out on Cheaper Plans

Utility companies don’t always let you know when a cheaper plan becomes available. If you’ve had autopay set up for years, you might be paying a higher rate simply because you never checked. So once or twice a year, compare your plan to current options and see if switching could lower your bill.

You’re Not Aware of Usage Spikes

Utilities like electricity, water, and gas are usage-based. When autopay is on, usage spikes don’t hurt as much emotionally because you don’t feel the pain of manually paying a higher bill. The money just disappears.

If your bill jumps noticeably from one month to the next, dig into why. It could sometimes be due to inefficient appliances, poor insulation, or a leak.

You’ve Linked Autopay to the Wrong Account

If your utility bills are pulling from a low-balance checking account, you could rack up overdraft fees when a higher-than-expected bill hits. Another mistake people make is linking autopay to a credit card and racking up interest since they’re not paying the balance in full each month.

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