Paying your bills

Paying bills on time is probably the most important item on your to-do list. For one thing, if you pay late or don’t pay at all, bad things could happen: Your electricity or phone could be turned off, for example. In addition, you might rack up late fees, which means you end up paying much more than you would have if you’d paid on time. And last but not least, failing to pay your bills on time will show up on your credit history, negatively affect your credit score, and make it harder for you to get credit, an apartment, or even a job.

The good thing about most bills is that they’re largely predictable. Some bills are the same every month, such as rent, car insurance, and student loan payments. Other bills may vary from month to month, but these are often for spending that you have some control over: your energy bills, phone bills, credit card bills, and so on.

Each bill tends to show up at the same time every month, so you know when you’ll need to pay it. If your bills are due just before you get paid, you may want to call your creditors or service providers and ask them if they can adjust the due date to make it easier for you to pay on time. They might not always do it, but it doesn’t hurt to ask. (Sometimes there is a cost for this — such as extra interest on the first payment after changing to the new date. It still may be worth it in the long run.)

You may want to mark the due dates of your various bills on your calendar and then set aside one or two days a month — maybe the days you get paid — to pay them. It’s smart to schedule paying each bill well in advance of its due date so you don’t run the risk of your payment showing up late.