According to the TD Canada Trust Everyday Banking Poll, there are 3 reasons that Canadians give for why they have missed their bills.
Canadians tend to overlook the implications of missed bill payments; surprisingly, 43% of respondents think that there is no consequence if they miss a bill payment. They feel that they have to pay the overdue amount on their next bill.
54% of Canadians report that they miss bill payments, however of those who miss payments, 73% of Canadians only miss paying their bills one to three times per year.
Paying the interest and late charges on missed bills is similar to throwing money away, even if you do it a few times a year. The easiest way to save money and protect your credit score is to pay bills on time.
To avoid late bill payments you should set up pre-authorized withdrawals and for your credit cards set up automatic transfers from your everyday bank account. For those who may get the mail irregularly, you may want to have your bills sent to you electronically, which can help make it easier to track them.
By setting up pre-withdrawal withdrawals, and automatic transfers, you are sure to never miss a bill payment or credit card payment.
It is always annoying to pay for something you could have easily avoided.
For those who do not set up pre-authorized withdrawals, you may want to avoid paying your bills as close as the due date as possible. Despite saying this, 36% of Canadians do this. You can easily forget to pay your bills, as we are human and things can come up causing you to forget to make the payment.
With all of this said you may want to follow the ideas above to avoid paying your bills late; missing payments can influence your likelihood to secure a future.
What do you do to avoid missing a bill payment?
image source: kalleboo