Not knowing how to organize monthly bills can cost you a lot of money and headaches. If you pay the water bill late, you could lose your water supply in the middle of a shower or cooking a meal for your family. If you pay a credit card bill late, you usually also must pay late fees. All late bills, especially if more than 30 days late, can also potentially ruin your credit. Many people have the money to pay their bills on time but are disorganized when it comes to due dates.
Calendar Methods
Consider using a wall or desk calendar to write down the due dates for each bill, especially those of an essential nature such as utilities, credit cards, mortgage, and car notes. Write down the amount due and the creditor name where you can readily see this.
You may also or instead use a personal or business planner, whether weekly, daily, or monthly. Use the same process you would use for a wall or desk calendar.
Experiment—this doesn’t have to be boring. Using colorful pens, markers or highlighters will literally brighten up this sometimes-dull process and also draw your attention to the due dates.
Changing Bill Due Dates
If you are paid monthly or every two weeks, you may want to change due dates if your creditor allows it. Most companies will allow you to select your own due date, especially when it comes to credit cards. Simply call your creditor and ask for your due date to be changed to a date that is more convenient for you.
Keep in mind that if your amount due changes each month (as is the case with a water bill) you will still need to use a system to keep track of the amount due. Be sure to note which expenses are fixed and which are variable in your personal spending plan.
Envelope System
The envelope system is a popular way to handle household cash, but you can also adapt it as you practice how to organize monthly bills.
Get some envelopes (any size and color is fine) and start writing on the outside of the envelopes. Write categories such as “utility bills” and place the actual invoices inside the appropriate envelope. You can use this for everything from credit card invoices to medical bills that pop up.
Conclusion
If you run into trouble paying your obligations on time, be sure not to resort to simply ignoring the matter. Call or write your creditor and ask for a hardship program. Also, never write a check for a bill unless you are positive that the funds will be in your account on time. The consequences of writing returned checks can range from possible jail time to landing in bad check writing databases such as ChexSystems, which can make it hard for you to open another bank account.
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