10 Bills You Should Never Put on Auto-Pay

Are you one of the 39% of consumers¹ who pay their monthly bills using automatic payments on the due date? 

While autopay can be a convenient way to ensure timely payments, it’s not always the best option. According to a recent study, 42% of consumers have continued paying for a subscription they no longer use.¹

If you’re not careful, autopay can lead to overspending and missed opportunities to negotiate better rates. Here are 10 bills you should take off autopay:

1. Credit Cards

Despite popular opinion, you should never put your credit card bill on autopay. Manually paying your credit card bill is a great reminder to review what you spent that month and assess if there’s anything fraudulent. 

Plus, the only surefire way to avoid fees and interest charges with autopay is to pay off your balance in full, which only works for people with consistent income and spending habits.

2. Utility Bills

Utility bills typically change from month to month based on your usage, and billing errors are not uncommon. 

By paying your utility bills manually, you can check for inaccuracies or overcharges and dispute them with the biller if needed. Autopay can also put you at risk for overdrafts if you have an especially high-use month and aren’t prepared.

3. Phone Bills

Many phone plans vary from month to month based on your usage, and charges can rack up very quickly on non-unlimited plans. Autopay can be risky if you forget to check your bill each month for any incorrect charges or fraud. 

Additionally, phone bills may be charged on different days each month, depending on how many days there are, which can catch you off guard if you have autopay set up.

4. Cable & Internet Bills

Cable and internet bills can fluctuate due to price hikes, and it’s important to review your bill each month to ensure you’re not paying more than you anticipated. This is especially true if you signed up for promotional pricing, as those rates often expire after 12 months. 

Autopay can make it easy to miss these changes and miss opportunities to renegotiate rates or find better deals.

5. Gym Memberships & Subscriptions

Gym memberships and subscriptions can be prone to hidden fees or changes in pricing, and it’s best to keep an eye on your monthly charges to ensure you’re not paying more than you should.

Many people also continue paying for subscriptions they no longer use due to autopay, so it’s important to review your subscriptions regularly and cancel any that you’re not using. ²

6. Annual Payments

Avoid using autopay for any bill that is paid annually, as it’s too easy to forget about these bills and you may not have budgeted for them. If the payment is taken when you didn’t expect it, it could leave you short on available cash. It’s best to manually pay these bills to ensure you’re prepared for the expense.

7. Medical Bills

Medical billing errors are common, and autopay could result in overpaying for services. It’s best to review your bills and ensure they’re accurate before paying, as it can be difficult to dispute charges after the fact.

8. Car Insurance Premiums

Auto insurance premiums are often due in intervals of once or twice a year, which can make for a hefty bill. If one of those payments hits your bank account when your balance is low, you may end up overdrawing and getting charged a fee. 

Your rates and coverage needs can change frequently, so you want to make sure you’re reviewing the details every renewal period, rather than having it on autopilot and not considering your options.

9. Student Loans

While student loans are a fixed monthly payment, it’s still important to review your bill each month to ensure there are no errors or changes to your interest rate or repayment plan. Autopay can make it easy to miss these changes and miss opportunities to adjust your repayment strategy.

10. Mortgage Payments

Mortgage payments are typically a fixed monthly expense, but it’s still important to review your bill each month to ensure there are no errors or changes to your escrow account. Autopay can make it easy to miss these changes and miss opportunities to adjust your budget or refinance your mortgage.

Sources:

1. https://www.pymnts.com/digital-payments/2022/39-of-consumers-pay-monthly-bills-on-time-with-automatic-payments/
2. https://www.crresearch.com/blog/subscription-service-statistics-and-costs/