How to Manage Your Bills Properly

If you’re struggling to keep on top of your bills each month, you’re not alone. When you take into account the multitude coming in for everything from gas and electricity to mobile phone contracts and TV licenses, remembering what needs paying each month can be quite a juggling act. Add mortgage or loan repayments into the mix, quarterly bills, transport costs and other miscellaneous payments and it’s easy to get overwhelmed or overlook individual payments.

Yet factoring bills into your budget and getting them paid on time is crucial. Late or missed payments can not only mean extra money needed to cover penalty fees, but a blow to your credit rating -making it harder and more expensive to get credit in the future.

So how can you keep on top of inflation-busting bills when income is struggling to climb at the same rate?

Putting together a realistic budget that acknowledges all monthly and quarterly bills and the cost of everything from car maintenance to groceries will give you a clear view of where and when the money goes. Mapping out your expenses this way can make it easier to put money aside for bills and upcoming expenses on pay day and help you look for opportunities to cut back on unnecessary spending.

Once you have a budget in place, a practical and simple means of managing your expenses is to separate ‘bill money’ from ‘disposable income’ by placing it into a separate account on pay day. Look out for a simple online bank account or a prepaid card account that provides online statements or mobile banking - that way you can review spending and any payments of bills 24/7.

If you’re planning to open a new account, you may find it useful to open one that offers a Direct Debit service and allows you to make free online payments and transfers. As long as there’s enough money in the account, Direct Debits automatically pay your regular bills on a pre-set date, so you no longer have to remember when they’re due. This saves time and avoids late or missed payments fees by ensuring your bills are always paid on time.  And, if you’re short of funds, some accounts offer overdrafts to help with covering the cost of bills and expenses.

 To start managing your bills effectively and stay on top of your debits, consider the advantages of drawing up a monthly budget and utilising free Direct Debit services offered with bank accounts and some prepaid cards