14 Bills You Should Always Pay Before They’re Due
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You know those days when bills surprise you and come out of nowhere? According to a 2022 LendingTree survey, 23% of Americans missed at least one bill due in the last six months. Also, the survey, conducted on nearly 1,600 U.S. consumers, found that rising inflation was a big reason for these late payments when it came to bills like rent, utilities, and credit card balances.
While it’s not just about avoiding late fees, paying bills on time can save money, increase your credit score, and help relieve your stress. Being in control of your finances and paying ahead can make life easier and more fulfilling; there is no price for that control. Ready to make life easier and your wallet happier?
Rent or Mortgage Payments
Your home is your most significant responsibility. Paying rent or mortgage early ensures you’re not risking late fees or eviction notices. If you’re a renter, paying early could even improve your relationship with your landlord!
LendingTree’s report, published in October 2021, recorded that Americans struggle to afford their housing costs the most by bill type. Overall, 18% struggle to pay their rent or mortgage.
Credit Card Bills
Did you know that you can lower your interest charges by paying your credit card bill before the due date? If you owe a balance, however, the credit card company will charge you daily interest, meaning the sooner you pay, the less you’ll owe.
An early payment can improve your credit utilization ratio, which accounts for roughly 30 percent of your credit score provided by FICO (Fair Isaac Corporation). In 2023, Experian reported this.
Utility Bills
You need to show up because you have electricity, water, and gas bills to pay. By paying them early, you avoid service interruptions and late payment fees. It is estimated that in 2020, many US households had difficulty paying their energy bills on time, according to the US Energy Information Administration. Don’t let that happen to you!
Nearly half (46%) of those in the group who’ve missed a payment in the past six months (32%) blame their default on a utility bill, the most of any category, according to LendingTree.
Car Payments
Paying early on a car loan is a life changer. By reducing the total interest you pay over the life of the loan. Financial advisors also advise setting up automatic payments so as not to miss due dates.
Insurance Premiums
It’s the same for health, car, or home; pay your premiums early, and you won’t face a break in your coverage. Even some insurance providers offer a discount for paying early, so it’s really a win-win.
Student Loan Payments
If you have student loans, paying early can slowly eat away at your interest. Did you know that federal student loans accrue interest daily?
Even small, extra well-spent payments make a big difference in the long run.
Subscription Services
Everything from a gym membership to Netflix can be disrupted if not paid on time. You should pay for these beforehand so as not to be locked out of your favorite shows or workouts.
Phone and Internet Bills
Being connected is no longer a luxury; it’s a necessity. Paying your phone or internet bills early ensures your services continue to work. Your payment habits may also be reported to credit bureaus, meaning on-time payments can help your credit score.
Childcare Fees
Payment policies for childcare providers are often very strict, and you will be late and lose a spot. Bringing down early payments shows reliability, and you don’t need to have an awkward conversation.
Medical Bills
Medical bills can often be paid in increments, but that doesn’t stop them from being sent to collections. It’s best to get ahead of it so you don’t have unnecessary stress.
Property Taxes
Late payments of property tax can trigger hefty penalties. In fact, some municipalities will even give you small discounts if you pay early, so don’t forget to ask your local tax office.
Credit Union or Bank Loans
The payment terms on credit unions or bank loans are often quite strict. Paying early shows that you’re a responsible consumer, which might qualify you for lower interest rates on their future loans.
Gym Memberships
If payments are late, gyms are fast to indefinitely suspend memberships. If you’ve committed to staying fit, paying early ensures you don’t lose access when needed.
Streaming Services
For example, if you subscribe to streaming services like Spotify and Hulu, they’ll use auto-renewals, but the services will cut you off if your payment instrument fails.
Do your best to stay on top of these by paying early or checking your payment methods.
Disclaimer – This list is solely the author’s opinion based on research and publicly available information.
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