Americans are feeling the pressure of rising household expenses. As many as 73% are concerned about their ability to pay their regular bills, according to a 2023 doxo INSIGHTS report. Here are some common mistakes that may be increasing your monthly expenses.
Late payments can result in fines that quickly add up. In fact, a 2022 LendingTree survey found that 61% of people who had to pay late fees couldn't afford to cover the cost.
Not Looking Over Monthly Bank Statements
Check your card and bank statements for unauthorized charges every month.Automated charges you no longer need or forgotten about could be costing you a fortune.
Not Using Budget Billing
If you regularly pay your bills on time, some utility companies will allow you to even out your monthly payments with budget billing. This can help you avoid sudden spikes in your monthly payments.
Not Reviewing Medical Bills
Before paying any medical bills, be sure to thoroughly look through the statement and make sure your insurance company has already paid its part.
Staying With the Same Provider Because It's Easier
When was the last time you shopped around for better rates and deals? Compare your current internet, cable and mobile phone plans to similar ones from other providers to find the best deal.
Waiting Too Long To Pay off Your Credit Cards
Credit cards can help in a pinch, but if you don't pay them off in time, you can end up spending much more on interest.
Not Canceling Your PMI Once Your Equity Reaches 20%
Many conventional loans require you to pay private mortgage insurance (PMI) if your down payment is less than 20%. Depending on your loan amount, a PMI premium can increase your monthly mortgage payments by a few hundred dollars.
Choosing the Wrong Plan for Your Needs
Take a look at how much you're using your phone, internet and streaming services. Does your plan match your needs?
Not Reading the Fine Print
An agreement's terms and conditions may not be an exciting read, but checking them can help you avoid unexpected fines and charges. Follow this practice before signing up for a new service, taking out a loan or opening a new credit card or bank account.