In this busy world, are automatic payments helpful? If you’re like most people, the answer is yes. A vast majority of our goods and services come with auto-pay subscriptions. Need to buy toilet paper? Get it delivered every month, automatically, then never run out again.
While the set it and forget it model has a ton of benefits, there are a few things you should watch. In this article, we’ll explain automatic payments in-depth, from the good to the bad, all the way to the ugly.
Who uses automatic payments?
Recent research has found that 89 percent of millennials have at least one subscription. The renewals of the service happen automatically. Additionally, as long as an active card remains on file, the service will continue indefinitely.
Benefits of using auto-pay
One benefit of using the auto-pay feature is that it saves time. Since there is so much for people to keep track of, automatic payments lift the burden. The money is withdrawn from their account on time, every time. They never worry about late fees.
Furthermore, many companies boost the environmentally friendly aspect of automatic withdrawals. PayItGreen estimates that the average household would save 6.6 pounds of paper each year. Not to mention, signing up for paperless billing avoids the release of 171 pounds of greenhouse gases and 63 gallons of wastewater.
If that isn’t enough, savings experts recommend asking for paperless discounts. Companies, such as ATT&T and Xfinity, are examples of providers that will knock off a few dollars each month. The savings add up and are easy to do with a simple inquiry.
Disadvantages of automatic payments
In regards to auto-pay, there are a few disadvantages. First, it’s easy to lose track of multiple payments, especially if they’re small. Have you ever forgotten about a gym membership? Overlooked an online magazine charge? It happens to many people. Read this article next for apps to keep your subscriptions organized.
Second, you must make sure the company holding your card information is trustful. Security breaches are the top worry to consumers. It’s good to periodically look over your financial statements to ensure all charges are correct.
How to set up auto-pay
Each service provider has a specific method for scheduling payments. The steps are usually on their support page. Check the options with your financial institution as well. Automatic bill pay is a common choice for reoccurring transfers.
The benefits of auto-pay are here to stay. When used correctly, payments are both fast and efficient. If you haven’t set it up yet, now is the time to look into it. As with any payment authorization, make sure to review the terms.