pros and cons of automatic bill payments

What Are The Pros And Cons Of Automatic Bill Payments?

Automatic bill payments can save you a lot of time and money if you use them right. Then again, they can also damage your finances and put you further in the hole than you were before. That's because these automated, computerized payments make life a little easier, of course, only if you've got enough money to go around. 

Automatic bill payments that don't require your review and consent are convenient when you live a busy lifestyle. However, they can become cumbersome when you're constantly struggling to make ends meet. Too much of a good thing can be bad, and automatic bill payments are no exception, even if they seem safe and convenient on the surface. 

Let’s talk about their pros and cons, and about how getting a title loan Delaware provides can help you stay on top of your bills.

What Are Automatic Bill Payments?

Automatic bill payments are withdrawals that come out of your primary and/or secondary bank account on a recurring basis. They can be set up to be taken before, on, or after the actual due date. These kinds of payments are designed to save payors time and money too.

The Pros And Cons Of Automatic Bill Payments 

There are several good things about automatic bill payments, including their ability to simplify your life and help you carve out a little more 'me' time. However, you should consider a few things before setting automatic bill payments up, because it's not always beneficial. So, here's what you need to know: 

Pros

  • You won't forget that a bill is due. And since you don't forget about it, you don't have to remember the due date either. 
  • Some businesses may offer you a discount to pay your bill automatically online with an instant withdrawal to save time and money.

Cons 

  • The withdrawals will still happen long after you've forgotten about them, so it's pretty easy to mismanage your money as a result. 
  • Automatic payments also put you at risk of over-drafting your bank account. That means you could end up spending more than when you started. 

The key is to manage your money closely enough to avoid common mistakes. And if all else fails, don't forget to cancel your automatic bill payments to avoid overlaps and insufficient funding notices. 

DID YOU KNOW: The average fee for insufficient funds in the bank is between $25 and $37 per day. Banks collect around $30 billion each year in avoidable NSF charges. 

better manage automatic bill payments

How To Manage Automatic Bill Payments Better 

Managing automatic bill payments isn’t as hard as it seems, at least not when you have some financial help.

Since life is impossible to predict, and almost anything can happen at any time, it pays to have an emergency backup plan first. Automated budgeting is perfectly fine until you run out of money.

So don't let that happen. Instead, look for ways to keep the income streaming in as your bills and obligations get handled in the background. One way to make sure to avoid late fees even if a financial emergency hit is to qualify for a title loan Delaware offers. Not only do title loans in Delaware help you make ends meet in a pinch but they're also easy on your credit because they use other factors to determine your eligibility and aren’t reported to any credit agency.

How Does A Title Loan Work? 

The way a title loan works is simple. You essentially use your car title for a lump sum of immediate cash. The amount is based primarily on the value of your vehicle, but an agent will still use an algorithm to determine your ideal loan amount. If you live in Delaware, you can get as much as $15,000 through title loans. 

NOTE: You must be at least 18 years old to qualify for Delaware title loans.

get a title loan

Using A Title Loan To Avoid Late Fees

Did you know that you can start the process for title loans in DE without even leaving your house? And once you submit your initial form, you can get paid within 24 hours or less if you follow these two simple steps:

Step 1 - Start The Process Online

Fill out the short intake form at Delaware Title Loans, Inc. An agent will review the information immediately and contact you within a few minutes. They will provide you with more information, answer any questions you may have, and give you further instructions.

You'll collaborate to determine the best time for the rest of the process. It can be whenever you'd like and the agent can even travel to your location. 

Step 2 - Provide The Right Items

When you meet with the agent, you'll need to show the following items to get approved for your loan as soon as possible: 

  • Your vehicle for a quick inspection.
  • The lien-free title to it (registered in your name). 
  • Your driver's license or a government-issued photo ID.

Once the agent reviews everything, they will determine if you qualify. If you do, you can finish your paperwork right there and then and get your loan the very same day.

Make sure to use this cash only for emergencies or to avoid incurring late fees or insufficient funds fees.

Submit Your Online Form Today

Automatic bill payments are great when they work in your favor, but banking fees due to insufficient funds can turn them against you. Avoid these fees when you are in urgent need of cash using a title loan Delaware offers. Submit your online form today to find out if you qualify.

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.

Peyton Sawyer

Peyton Sawyer learned to navigate through the world of finance the hard way. After living a comfortable life as a homemaker, she became a single mother of three without warning. Through trial and error, she found her way back. Now a savvy financial consultant, she is helping others find financial security.