Autopay vs manual pay

Morning.  At what point was everyone comfortable setting accounts up on Autopay?  Right now I am manually going into each website and setting up payment.

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  • When I was always budgeted a month ahead & my credit cards were PIF (so I could pay the whole statement balance at any time). I still have one account that doesn't allow autopay, but other than that I have everything set up either with autopay or bill pay thru my credit union.

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    • briefcase
    • A rack of ties, a travel mug, telephone, briefcase filled with papers
    • briefcase
    • 2 yrs ago
    • Reported - view

    Second the previous comment.  When we got a full month ahead, we put everything on auto pay.  You save a decent little chunk on convenience fees, too, which helps make your budget more efficient.

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    • nolesrule
    • Stealing From the Future fix is an improvement but is incomplete....
    • nolesrule
    • 2 yrs ago
    • Reported - view

    I have almost everything on autopay, other than a couple of credit cards where I do not trust them to calculate the correct auto-payment and/or they do not allow me to choose the payment date relative to the statement date. All my other cards and bills are on autopay where possible.

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    • WordTenor
    • Can we agree that goals are dumb and immature? Sure.
    • WordTenor
    • 2 yrs ago
    • Reported - view

    Once I was a month ahead I put everything on autopay. Recently finally got my one last credit card on auto, which is great. 

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  • I've been on autopay for years.  Way before I knew about YNAB.  To me, it's so convenient, and removes the stress of possibly forgetting to pay something.  In fact just this week, I was moving the last of my Auto Pays from my Credit Union to the actual company.  That way I won't have to change the payment on the CU when amount due changes.  (when I'm on budgeted payment for Gas and Electricity, once a year, they adjust slightly based on usage, price of product, etc.)

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      • Khaki Storm
      • YNAB book topics online: https://support.youneedabudget.com/r/q5w48j
      • Khaki_Storm.1
      • 2 yrs ago
      • Reported - view

      Bruce same here, auto pay is free thru credit union vs. gas company wants 3.95/month as a convenience fee. Also, credit union sends me an email before payment as an alert.

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  • Almost everything we have has been on autopay for as long as I can remember. We are not a month ahead or anything like that. YNAB is easing stresses in this area, but I've always prioritized (in my mind at least) "I'm going to need $X out of next paycheck for the cellphone bill" etc. This may not work well if your bills fluctuate much, but ours don't. 

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      • adriana01
      • adriana01
      • 2 yrs ago
      • 1
      • Reported - view

      rnjenren1 I think the "I know the money will be there" part is more important than the "month ahead" part, but for me that's what it took to get there. 

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  • Yeah, I don't know why it took me so long but I, like the consensus, didn't do it until I was a month ahead. It's bliss now. Never have to worry about it. My budget alerts me to any billing anomalies.

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  • Auto-Pay everything you can.

    When you do it is probably when you are comfortable.
    Personally, I would start with auto-pay the statement balance on all credit cards.  If you can't, then put the credit cards away until you can.  Then add one every couple months or whatever rate you think makes sense to you.

    One you are budgeting the next month, there's no reason not to do all of this.

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      • mdmangus
      • mdmangus
      • 2 yrs ago
      • 1
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      Cadet Blue Nomad I have everything on auto pay for full balance as well.  I still go and make manual frequent payments on various cards so my credit report shows low utilization.

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    • mdmangus I did that for a while but realized that it's only a few points, most times, and if I actually need someone to look at my credit score, I can do that a few weeks beforehand.
      But, if  you have a credit score >750 then it doesn't really matter much if it's 780 or 800.

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  • katiecarson1976

    I refuse to autopay anything. First I don't want my bank account number out there in a bunch of companies servers to be stolen by hackers, who can't name a recent data breach? Second I like to be in control.  Third if a billing error occurs I know before its paid, and get it resolved quickly.

    All my bills are setup with my bank's online bill pay. When I get the bill, usually by email as I've gone paperless where possible, I schedule the payment to me made couple of days before the due date.  I'm happy with this setup, don't think autopay is in any way mandatory.

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      • nolesrule
      • Stealing From the Future fix is an improvement but is incomplete....
      • nolesrule
      • 2 yrs ago
      • Reported - view

      Coral Battery Paper checks have routing number and account number on them.

       

      I prefer pulls for payment because it ensures the payment will be made by the payment date. A bill pay from the checking account can get lost or delayed  and then you have to deal with late payment or non-payment  issues.

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    • nolesrule like I said its drawn off of the banks bill pay account not mine so it's not my account number. Also my bank guarantees it to arrive by the date set or they'll pay the late fee so that's a non issue.

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  • Autopay here. I want to be there where money isn't something I need to think about. Not having to worry about checking my bank, missing an email etc is worth a lot to me.

    Coral Battery - I'm not sure your first argument is valid. It may be different from where I live, but any company you pay bills to get to know your account number when you pay, just like if you were to auto it. Auto where I live, is a service you tell your bank to do within a limit amount of money. The only way as far as I know to avoid sharing your account no would be to use an intermediator like paypal. But it's a good thing to think about.

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    • Coral Pony By using my banks bill pay they either get an electronic transfer without seeing my account number or a check drawn off of a bill pay account not mine. And besides it's more them storing it in their database to process the autopay than them just passively seeing it on like the bottom of a check that I'm worried about, which isn't possible anyway. But with a new company getting hacked and losing data it's good to limit that.  I do give it to my employer for direct deposit because they don't issue checks it's that or they give me a prepaid debit card and don't get me started on those...

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  • I don't autopay anything. I want to check my budget and make sure there isn't some error (either in my budget or in the bill) before I let them have my money. I do pay electronically/online, usually through the website of whatever company is billing me. The only checks I write these days are for charity so I have a record for tax purposes if needed.

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      • jenmas
      • jenmas
      • 2 yrs ago
      • Reported - view

      Louie manual pay or autopay you still have an opportunity to review a statement before the payment comes out. Do whatever works for you of course, but lack of transparency on the payment amount shouldn’t be an issue. 

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      • Louie
      • YNAB Newbie
      • Louie
      • 2 yrs ago
      • Reported - view

      jenmas True, but my life gets busy. If I forget to check, I don't want it to still hit automatically. You are assuming a level of discipline on my part that may not exist.  ;-)

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