17 Bills You Should Never Put on Autopay (And Why It’s Risky)
This post may contain affiliate links.
Derek Swords, vice president of product management at Fiserv, says more than 75% of consumers use autopay for at least one bill, especially for subscriptions to things like streaming services. It will feel like a win if your bills are set on autopay, no missed due dates, no late fees, and just one less thing to worry about every month. Yet you might be surprised to learn some payments work much better when done manually.
Some bills rise and fall dramatically, auto-renew, and can have sneaky errors you can overlook when paying for them automatically. Many bills are not autopay-friendly, and relying on automation in the wrong spot can result in overdrafts, wasted money, or missed savings opportunities.
Utility Bills
Your water, gas, and electricity bills change every month depending on how much you use and how much your rates are. When bills go up radically in extreme weather months, you find yourself vulnerable to overdraft fees because you weren’t prepared.
Paying manually allows you to track usage, raise flags on billing errors, and take better control of your budget.
Cell Phone Bills
Cell phone bills can be driven through the roof by data overages, roaming charges, or billing changes. Some carriers even have monthly billing cycles, which change monthly.
When you pay manually, you’ll look through your bill, catch any surprise fees, and skip the extra charge.
Medical Bills
It turns out there are more medical billing errors than you might think. You overpay or pay for services you did not get by not manually checking your bills.
You shouldn’t pay for someone else’s mistake—always check your medical statement before paying.
Annual Subscriptions
Do you remember when you subscribed to that magazine last January? Probably not. Annual subscription fees automatically renew; if you haven’t budgeted for them, they can wreak havoc on your budget.
If you take care of them manually, you can examine if you still require the service before paying.
Free Trial Services
Signing up is easy enough, but canceling is almost as easy to forget. In reality, many customers are paying for services that they didn’t even know were still active.
Instead of creating an autopay for these, set a reminder to review and cancel when the trial period ends.
Magazine Subscriptions
How many of those monthly magazines that come to your door do you read? If you’ve let your reading derail, you might be overspending on subscriptions you don’t appreciate. Manually paying helps you realize you’re about to waste money by renewing.
Streaming Services
Do you have Netflix, Hulu, Disney+, and five more? It’s no secret that streaming subscriptions pile up quickly. It’s easy to overpay for services you don’t use unless you enjoy them.
A new survey by Self Financial finds that Americans are wasting US$32.84 a month on unused paid subscriptions. Asking yourself, ‘Am I really watching this every month?’ could save you money when manually renewing.
Gym Memberships
If ‘out of sight, out of mind’ applies to autopay, then your gym membership can find itself paying for working out when you didn’t.
You’re locked into a year-long renewal with gym contracts. By paying manually, you make sure you really think about how much you’re actually using your membership before you pay for it.
Big-Box Store Memberships
Costco and Sam’s Club warehouse memberships are a good value—if you’re shopping there often. Otherwise, their automatic renewals are a waste of your money. Before deciding to continue, review how you actually spend.
Family Memberships
The zoo, museum, and theme park memberships you buy automatically renew even when you didn’t go once that year. Check first that your family actually got their money’s worth before re-upping.
Broadband and Internet
Surprise! The promotional rate you signed up with on day one may have quietly expired, and your price may have skyrocketed.
The beauty of paying your internet bill manually is that you can see exactly what they are charging you and catch those sneaky increases before you throw your money away.
Credit Card Bills
Credit card bills are nice to automate, but they fluctuate wildly from month to month. Using autopay may also mean you miss checking your statement for fraudulent charges or mistakes.
It is better to pay manually as you simply remain in the loop and pay only what you purchased.
Insurance Premiums
Auto, home, or renter insurance rates frequently change at renewal. But if you are on autopay, you might miss your chance to renegotiate or at least shop for cheaper alternatives. Reviewing your premiums should become an annual habit so you don’t overpay.
Rent Payments
Unlike utilities, lease terms (and rent amounts) are subject to change when you renew. If you manually pay your rent, you can account for these changes and make sure you’re on the same page before the money vanishes from your account.
Subscription Boxes
Subscription boxes can be fun but inconsistent, from beauty products to snacks. And what happens after you start getting items that you don’t love?
By paying manually, you can skip a month or even cancel altogether if the value doesn’t stack up.
Charitable Donations
Giving is great, but like many folks, your finances or priorities change year to year. By setting donations to autopay, you’re taking away the flexibility to decide which organizations you want to fund – or how much you can give.
Investment Contributions
Do you have big save goals this year? Outstanding. However, market fluctuations, job changes, or altering economic goals may not make it realistic to put down a certain contribution each month.
Instead of blindly automating contributions, revisit your strategy every once in a while.
Disclaimer – This list is solely the author’s opinion based on research and publicly available information.
6 Monthly Dividend Stocks That Will Pay Off Your Rent
6 Monthly Dividend Stocks That Will Pay Off Your Rent
15 Wallet-Friendly Life Hacks That’ll Actually Make a Difference
15 Wallet-Friendly Life Hacks That’ll Actually Make a Difference
