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Thread: Canceling Auto Payments

  1. #1
    klunick
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    Canceling Auto Payments

    I have a long commute home so I think about stuff to keep me awake. Today's topic was whether or not canceling auto payments would save money. I have several bills on auto pay through my credit card. Normally I pay my credit card bill off each month. But we recently redid several rooms in our house, Christmas, and oldest son's birthday coming up, I have a balance that will take some time to pay off. Any amount I can take off my bill each month sounds like a good thing.

    Do you think there are any benefits to canceling auto payments in the long run???

  2. #2
    Senior Member Teacher Terry's Avatar
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    I use auto pay through my bank account. That might work better.

  3. #3
    Senior Member SteveinMN's Avatar
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    I auto-pay some bills; not others. There are some (like the gas/electric bill and the VISA/MC bills) that I want to see every month before they gets out of hand or so I can pull payments from multiple streams (savings, rental-house account, etc.). Other bills (Hulu, some charitable donations, etc.) are on auto-pilot and I'll catch any errors (none yet) when I review our bank statement monthly.

    One benefit I see to cancelling auto payments is in not having your CC or bank information on various vendor Web sites for some hacker to glom onto or for some fwit employee to have their laptop with such information get stolen. To that end, I've started moving those kinds of payments either to my credit union or to PayPal. It does present a somewhat larger target to have so many payment eggs in one basket, but I think my CU and PayPal have a vested interest in making that data more secure than Bill & Ted's Most Excellent Western Emporium.

    One disadvantage to cancelling auto payments is that one then needs to put the payment on the calendar each time it has to be paid. Payments can be missed inadvertantly.
    Success is to be measured not so much by the position that one has reached in life as by the obstacles which he has overcome. - Booker T. Washington

  4. #4
    Senior Member Teacher Terry's Avatar
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    Like Steve I don’t give my bank information to others. I set up autopay through my bank account because one month I forgot to pay a couple of bills.

  5. #5
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    Quote Originally Posted by klunick View Post
    Do you think there are any benefits to canceling auto payments in the long run???
    How long are you talking about and what is the interest cost? It's a lot of hassle to change it changing back in a few months could prove an issue? Only you can decide if this is the best decision for you.

  6. #6
    klunick
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    Quote Originally Posted by Gardnr View Post
    How long are you talking about and what is the interest cost? It's a lot of hassle to change it changing back in a few months could prove an issue? Only you can decide if this is the best decision for you.
    It will take about 3 months to pay off the credit card. We have no other debt as our house was paid off several years ago. We redid the kitchen, bathrooms, and living room with all new paint and furniture so had to use the credit card for everything. Have been paying $1000 per month to get it down as quick as possible.

    I was thinking more along the lines of stopping auto pay and just writing a check each month for the bills. I normally write the due date on the envelope to remind me when it needs to be paid so that won't be an issue

  7. #7
    Senior Member razz's Avatar
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    I go back and forth with auto-pay but have decided to keep close watch on the bills which are mostly paperless. I have a monthly sheet that I record all my payments made through the bank online. The only challenge is that they all used to come towards the end of the month but now are scattered throughout the month. This does ensure that I keep a close eye on my banking and transactions posted to my one CC.
    Occasional bills are paid using Paypal.

    So far I have not found any great advantage to either auto-pay or not so no help to answer your question.
    Gandhi: Happiness is when what you think, what you say and what you do are in harmony .

  8. #8
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    Quote Originally Posted by razz View Post
    So far I have not found any great advantage to either auto-pay or not so no help to answer your question.
    If you've been paying interest for several months and are now just considering stopping, is it really worth stopping now? It could take 2 cycles to get it done.

    I really do find advantage. I negotiated with everyone what day the auto-pay would happen way back when this became an option thus spreading payments across 4 paychecks. I have everything possible on a level-pay plan so I knew exactly how much. I do not have to think about paying bills at all. No worry when we're traveling or at the cabin for extended time. It is paperless because all of these are also on e-statement, which I love and no stamp $ -these add up over time.

    I can't find a disadvantage. This however, has no bearing on Klunik's decision matrix.

  9. #9
    Senior Member Teacher Terry's Avatar
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    I wouldn’t want to pay interest on bills. You can set it up through your bank and then you won’t need to think about it.

  10. #10
    Senior Member kib's Avatar
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    switching autopay that's through a credit card is typically fast and easy. What about using a different credit card for the autopay of ongoing bills, making sure to pay that one off every month? = no interest accrued on bills, and if you find a good rebate card, money back for running the bills through a cc.

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