17 Bills You Should Never Put on Autopay (And What to Watch Out For)
Autopay offers convenience, but it’s not suitable for every expense. For certain bills, manual payments allow you to catch errors, monitor changes, and avoid unwanted charges. Here’s a list of 17 bills to keep off autopay and reasons to stay vigilant.
Credit Card Bills
Credit card balances can be all over the map, and paying automatically can lead to interest costs if one isn’t paying in full or possible late fees if the balance isn’t fully covered.
Utility Bills (Electric, Gas, Water)
Utility bills change from season to season, or one might have a sudden spike in usage. Autopay may mask billing errors and leaks before you can review or dispute them in question.
Gym Memberships
The contracts involved in gym memberships are always very complicated and involve cancellation issues. Once a gym contract receives autopay, it will continue charging you even after you have stopped going or want to cancel.
Subscription Services-Streaming and Magazines
Often, subscription services go up unexpectedly; with autopay, you may pay for charges for services you planned to cancel previously or that you no longer use.
Cable and Internet Bills
Promotions and rates change frequently. More than likely, autopay will skip these changes, resulting in higher-than-expected bills.
Insurance Premiums (Home, Auto, Health)
Sometimes without warning, insurance premiums can go up. Paying by hand allows you to recognize when premiums have increased and billing errors occur before you make a payment.
Medical Bills
Medical billing mistakes are common, and autopay can end up paying charges before you’ve had time to review and dispute the charges.
Car Lease or Loan Payments
Auto Lenders may also charge late fees or administrative fees. If these are added, Autopay can be very complicated in trying to reconcile after payments have gone through.
Property Tax Payments
Property taxes can fluctuate every year as assessments change. Autopay cannot catch the changes, which can cause account shortages.
Personal Loans or Small Business Loans
Loans may have fluctuating payments due to variable terms, and Autopay may cause overdrafts when the rates change or additional fees are assessed.
Mortgage Payments
Escrow or insurance changes may change the amount of mortgage payment. Autopay does not recognize these changes; hence, you are at risk of overdrafts and missed payments.
School Tuition or Student Loan Payments
Tuitions differ from one semester to the other because of different fees involved. Changes in the student loan rate add complication to autopay leading to overpayment or underpayment.
Cell Phone Bills
Cell phone bills are very prone to have hidden charges affiliated with data overuse or roaming. They get through with auto-pay before you review them.
One-Time Services (Home Repair, Pet Care )
Merchants for one-time services may store card information and then overcharge, whether by accident or fraudulently. Manual pay is much more in control.
Professional Membership Fees
Membership fees can go up, and terms can change without notification. Autopay runs the risk of covering memberships no longer wanted or that one does not want to renew.
Home Security System Fees
The monthly monitoring rate may increase. Often, companies add on cancellation fees. Manual payments help you recognize these increases.
Vacation or Travel Services
Travel subscriptions charge variably, and autopay may cover unused services, especially if you forget to cancel.