15 Bills You Should Never Put on Autopay (And Why It’s Risky)
Setting up autopay can make life easier, but it’s not always the best option for every bill. While autopay can help you avoid late fees, certain payments may fluctuate, require your attention, or be at risk of hidden charges.
For these bills, it’s better to pay manually to avoid unexpected surprises. Here are 15 bills you should think twice about before putting them on autopay, and why doing so could be risky for your wallet.
Utility Bills
Utility bills can vary each month, especially during peak seasons like summer or winter. Putting them on autopay might result in unexpected high payments if you’re not closely monitoring your usage.
A sudden spike in your electricity, water, or gas usage can catch you off guard and cause strain on your budget. Instead of autopay, check your bill each month to ensure everything looks correct. It also gives you a chance to challenge any mistakes or overcharges.
Credit Card Payments
Autopay for credit cards may sound convenient, but if you’re not paying attention, it can lead to missed opportunities. You could accidentally pay the minimum balance instead of the full amount, leading to interest charges.
Or, if you’re tight on funds one month, an automatic payment might overdraft your account. It’s better to pay credit card bills manually to stay on top of your spending habits and avoid any surprises.
Subscription Services
Streaming services, fitness apps, and other subscriptions may seem harmless, but they can add up. When you have multiple subscriptions on autopay, it’s easy to forget about them, leading to months of paying for services you don’t even use.
Companies also occasionally raise their rates, and you might not notice if it’s all on autopay. Regularly reviewing and manually paying these bills ensures you’re only paying for what you use.
Gym Memberships
Gyms are notorious for making it difficult to cancel memberships, especially if you’ve signed up for a long-term contract. If you stop going to the gym, but autopay continues, you’re essentially throwing money away.
By manually paying your gym bill, you stay aware of whether it’s worth the cost and can easily cancel if needed. It’s also a good reminder to evaluate whether you’re getting value from your membership.
Medical Bills
Medical bills can be confusing, and the amount due can change based on insurance claims and adjustments. If you set medical bills on autopay, you might pay the wrong amount, especially if insurance coverage updates haven’t been applied yet.
It’s smarter to review these bills carefully and ensure you’re not overpaying or missing out on insurance coverage. Make sure everything is accurate before making payments.
Mobile Phone Bills
Your phone bill may fluctuate if you exceed data limits or make international calls. Putting it on autopay without reviewing each month can lead to paying for services you didn’t expect.
Additional charges can sneak in, and you might not realize it until after autopay has withdrawn the money. Always check your bill first to avoid paying for services you don’t use.
Car Insurance
Car insurance rates can increase after an accident, traffic ticket, or even after your policy renewal. If you’re on autopay, you may not notice these rate changes until it’s too late.
It’s important to review your insurance bill regularly and look for any discrepancies or opportunities to switch providers for a better rate. Keeping an eye on your car insurance costs helps you avoid overpaying.
Cable or Internet Bills
Like phone bills, cable and internet bills can include surprise charges, price hikes, or service fees. Companies often change their prices or add extra costs, especially after promotional periods end.
Autopay may leave you unaware of these increases, resulting in higher bills without notice. Paying manually gives you the chance to challenge unexpected fees or even negotiate a better rate.
Rent or Mortgage
Paying your rent or mortgage on autopay can be risky if your account balance fluctuates. If your bank account is low, an automatic withdrawal for rent could cause an overdraft, leading to hefty fees.
Paying this bill manually ensures that you always have enough funds to cover it and gives you peace of mind. It also allows you to review your payment for any potential errors.
Student Loan Payments
Student loans can have fluctuating interest rates, payment plans, or even forgiveness opportunities. If you put these on autopay, you might miss out on changing payment plans, lower interest rates, or benefits such as temporary deferment.
By paying manually, you can ensure you’re always paying the correct amount and can adjust your payments based on your financial situation.
Homeowners or Renters Insurance
Like car insurance, homeowners or renters insurance policies can change after your policy renewal or if you’ve made any claims. These increases can go unnoticed if you’re on autopsy.
It’s better to review your insurance statements and make sure you’re paying the correct amount. You might also want to shop around for a better rate before locking into a long-term payment.
Property Taxes
Property taxes are a significant expense that can change annually based on your home’s assessed value and local tax rates. If you put them on autopay, you might be paying too much or too little if rates change.
Manually paying property taxes gives you the opportunity to review any changes and prepare accordingly. Plus, it allows you to dispute any incorrect assessments before paying.
Taxes to the IRS
While it might be tempting to put your IRS payments on autopay, tax bills are often complicated and can change after adjustments or deductions.
If the IRS recalculates your taxes, you may end up paying the wrong amount automatically. Always review your tax bills carefully and pay them manually to avoid any errors or overpayments.
Charitable Donations
Charitable donations on autopay can easily be forgotten, leading to payments you may not be able to afford during tight financial months. It’s better to review your donations regularly and give when you can rather than relying on an automatic system.
Manually paying allows you to adjust your contributions based on your current financial situation.
Vacation or Travel Plans
Whether it’s a vacation payment plan or a monthly travel club, putting these expenses on autopay can be risky. Your travel plans might change, but the payments will still continue unless you cancel them.
Paying for travel manually gives you more flexibility and ensures that you’re only paying for trips you’re definitely taking.
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