The main problem for many homeowners is that when a bill is missed or paid late, extra interest and fees are added to that bill. This makes it even more difficult for that bill to be paid off, leaving many homeowners struggling to keep on top of their other bills. This then leads to other bills being paid late, and the whole cycle of added fees and interest continues.
Admittedly, as a homeowner it isn’t always easy to keep on top of your bills. However, there are four simple things you can do to make keeping on top of your bills easier to manage.
- Know what bills you have coming
The worst thing you can do is not keep track of what bills you have to come, as this will only make it more difficult for you to stay on top of them. If you haven’t already, sit down with your partner and make a list of all the bills you have to pay each month.
This list should include every payment that you need to make, from mortgage payments to medical insurance, every bill must be on there. Once you have completed your bills list, you can then use it to budget for each month. This will ensure that you set aside enough money each month to pay off all of your bills.
- Set up direct debits
To avoid forgetting to pay any bills, as this leads to late payment charges and increased interest rates, use direct debits for payments. Setting up direct debits for each bill is ideal, as it means that even if you forget about a bill, it will get paid automatically.
Obviously, for the bills that aren’t the same amount each month, you won’t be able to set up a direct debit. However, for most bills you should be able to do so.
- Don’t let one missed payment affect your other bills
If you end up missing a payment for a bill, such as for property tax, don’t let it affect your other bills. You see, it’s common when a bill is missed, for homeowners to focus on that bill, forgetting to keep on top of the other bills.
If, for instance, you got behind with your property tax bills, don’t let it affect your other bills. Make sure that you continue to pay all your other bills on time and deal with the missed property tax bill separately.
The best way to get back on track with a missed bill, such as property tax would be to get a short-term loan from a loan company like Reliance Tax Loans. Getting a loan would allow you to pay off your late bills and you could then start making the loan repayments as and when you could afford them.
- Open an account for bills
Instead of keeping all your money in one bank account, open a second account just for money for bills. That account could then be used to put all of your money for bills into each month. From mortgage payments to payments for school fees, all bill money should be put into that account.
Then, any spare money can be left in your regular bank account and can be used for any additional spending. Such as for treats, luxuries and family days out.
Keeping on top of your bills as a homeowner can be difficult, especially when there are lots of different things that need paying. But, by following the tips and advice in this simple guide, you can make things much easier for yourself.