Paying bills on time is something we all should do. It’s the polite thing to do when someone is providing a service to you or loaning you the money you need to do what you want.
While you may know it’s the right thing to do, you may not realize or even think about the other important and valuable reasons behind paying bills on time.
It’s not just a polite thing to do, but when you think about the reasons below, you’ll see the much bigger picture when it comes to why you should pay your bills on time.
Advantages of paying bills on time
1. Avoid Late Fees
One of the most important reasons why you should be paying bills on time is to avoid late fees.
Every place that lends money or provides a service to others has the ability to charge late fees if the agreed amount isn’t paid on time.
These fees can be a percentage or a peso amount and can range from 1% to 2.5% or more each time you’re late.
Some companies or individuals give you a grace period before the late fee is accessed.
While others will apply late fees to your account the day after they’re due.
Depending on the type of bill you are paying on each month, not paying bills on time may result in cancellation of your service.
This can happen with your cable bill, internet bill, water bill, your electricity bill, or your phone service.
If you are cancelled, you will have to pay a re-connection fee to get your service started again.
It is possible that you will also have to pay the bill in full so it is current before they get it started again.
3. Credit Report
Another advantage to paying bills on time is the ranking you will have on your credit report.
Credit card companies, some utility companies, and vehicle loans all report to the credit report.
Your credit report helps you when getting loans or credit cards, so it’s important to make sure you do what you can get to the best credit rating you can.
A lot of times, the interest you’re charged for loans is best on your ranking; the best your rank, the lower your interest rate.
This will help you save hundreds, maybe thousands of pesos over the life of your loan.
4. Payment Arrangements
If a bill comes in higher than you originally expected or you are short on cash, making payment arrangements may be the only way you can get the bill paid.
If you do not pay your bills on time, payment arrangements may be out of the question.
Not paying bills on time may scare the person wanting money from you so they may not feel comfortable allowing you to do this.
5. Peace of Mind
Lastly, having a peace of mind makes you feel secured and happy.
It will give you more benefits because you do not worry and are not stressed out.
I think this is the best advantage you can get when you are paying bills on time.
When you pay your bills on time, your trust rating will go a lot further with those you’re borrowing money from.
You’ll have the ability to make bigger and more expensive purchases and your credit rating will be better.
All of these add up over time, but it’s important to remember when you pay your bills on time.
And you’ll have much more than a person that doesn’t pay on time each month.
Here is another resource for you to read: Procrastinator’s Guide to Bill Payment