Autopay: When to Use It, When to Avoid It, and How to Stay Safe

Autopay sounds fantastically convenient. No more time spent writing checks and no logging into dozens of websites to pay your bills. You’ll have assurances that you won’t miss a payment date. Autopay has some drawbacks, however. The "set it and forget it" aspect of autopay can lead to overspending. Failing to review your bills can cause you to miss rate hikes, extra fees, or erroneous charges. 

In this article, we'll explain when autopay is a good idea and when it is not. We'll tell you how to avoid logging into all those biller websites, while still reviewing your bills regularly. 

Autopay Best Practices

Best Practice	Description
Review your bills	Even with autopay, check for mistakes, rate changes, and fees.
Combat fraud	Monitoring your statements helps you spot fraudulent charges early.
Confirm payment data	Ensure your credit card information remains accurate and active.
Verify application of payments	Double-check that the payments get applied correctly.

Common Scenarios Where Autopay Shines

Autopay works well for those who prefer to "set it and forget it." Insurance premiums, loan payments, rent, subscriptions, and daycare costs fall squarely into this category. These regular, predictable expenses offer the perfect opportunity to take advantage of autopay’s convenience.

Timeliness is the benefit that attracts most consumers to autopay. Automated payments ensure bills get settled without lifting a finger, steering clear of late fees. Timely payments signal creditworthiness to lenders and influence your credit profile. 

Convenience is another big draw for autopay. You don't need paper checks or stamps, and you can avoid the hassle of logging in and navigating a biller's website to make a payment. 

Some companies sweeten the deal with discounts on bills or interest rates if you use autopay. These financial perks can add up. 

When You Should Avoid Autopay

Certain scenarios call for caution with autopay. Variable expenses, such as credit card bills and utility bills, often fluctuate month to month. Automatically paying these bills without regular reviews may cause you to overlook unexpected rate hikes, hidden fees, or erroneous charges. Always take the time to verify these bills before they process. 

Another consideration involves your bank account balance. Autopay requires you to maintain enough funds to cover the payments. Failing to do so can lead to overdraft fees and even missed payments, which might cause late fees or service interruptions–the very conditions consumers use autopay to sidestep.

Although they are good candidates for autopay, subscriptions and memberships also deserve scrutiny. You might find yourself paying for services you no longer use or need.

Be cautious with services that make canceling autopay subscriptions difficult. Some companies design their cancellation processes to be cumbersome, hoping you'll give up and continue paying.

Regular Bill Review: A Crucial Habit Even with Autopay

Even when autopay works like a dream, it's crucial to stay actively involved in managing your finances. Set up a routine to review your bills each month. A quick check can save you from costly errors and help you stay informed about every charge. 

TIP: If Cubby Paperless consolidates your monthly bill information, you can review all of them at once and avoid the pain of logging into each website individually.

Consumers should regularly compare their payments with their budget to identify potential fraud or unauthorized charges. Next, keep an eye out for any rate hikes or extra fees to avoid unexpected financial strain. 

Be wary of contract auto-renewals or expiring trial periods so you can make adjustments before committing to another year's subscription. Expired cards or closed accounts linked to your autopay can disrupt your payments. Update your payment information promptly to prevent such issues. Use calendar reminders and alerts to stay organized.

The Role of Cubby in Streamlining Bill Management

Enter Cubby Paperless, your secret weapon for smart bill management. Cubby helps you reduce the headache of logging into multiple websites without sacrificing the diligence needed to review your bills.

As a digital dashboard that consolidates all your bill information in one place, Cubby allows you to maintain control over your finances while still enjoying the benefits of convenience. With Cubby's interface, you can easily review due dates, payment amounts, and any changes to your bills. Cubby's notifications and alerts mean you won’t miss crucial billing updates.

Incorporating a tool like Cubby into your bill management routine delivers the best of both worlds: a streamlined process and the peace of mind that comes from knowing you haven't overlooked any details. Whether you choose to use autopay or prefer manual payments, Cubby makes regular bill review simpler and more efficient, allowing you to make informed decisions about your money.

If our service is not yet available from your utility companies and other billers, tell them you want them to use Cubby Paperless. And tell them that if they do, you will switch from paper to paperless billing.