Dealing With Bills in a More Effective Way
The average Australian has between six to eight bills to pay every month from utilities to mortgage/rent, water consumption, internet, mobile phone/landline, insurance, car payments and subscription services such as the gym or streaming services.
Paying these bills on time is a key component to being in control of your financial life. Having a sense of awareness of the money that comes and goes from your bank account keeps life stress free and gives you the feeling that everything is under control.
There are a range of different approaches that can help us deal with bills more effectively, and feel more secure about our finances. Check out a few different ways to deal with bills more effectively below.
Review Your Financial Situation
The first step in dealing with your bills is to evaluate your financial situation, and whilst this can be a confronting task it’s an important step to take. Review all incoming and outgoing payments and evaluate individually. If you haven’t used that gym membership for the last 6 months, cancel it!
Secondly, consider your credit card and its worth. Finder.com.au found that there are 14,754,488 credit cards in Australia as of October 2019, netting a national debt accruing interest of $29 billion. If you don’t need your credit card or feel like your finances are getting out of control consider ditching your card.
Reviewing your financial situation will give you a much clearer view on what you can and cannot afford, as well as helping clear up some outdated expenses.
Do Your Research
Once you’ve evaluated your financial situation, you can take the time to do some research and find out if you’re getting the best bang for your buck. There are many comparison sites available which help you to work out if you’re getting the best deal on your bills. Find out if you can get a better deal from another provider or negotiate a discounted rate.
Pay Your Bills on Time
Paying your bills on time seems easier said than done, but by taking advantage of early payment discounts on your bills you can save yourself a lot of money. Many suppliers offer pay on time discounts offering you a lower amount for paying the bill before its due date. According to Canstar, doing this can lead to savings between 5% to 30%.
Paying your bills on time not only helps by saving you money, but it can lead to positive changes towards your credit score. Consider your bills like any other repayment — if you miss that payment, fall behind and pay interest — this could lead to a drop in your credit score. Paying your bills on time will help increase your credit score.
Use Platforms That Help You Automate Your Bills
As we enter a new decade we have an abundance of new technology available on the market which is changing the way we pay our bills. From mobile apps to desktop services, there are many platforms helping Australians pay their bills and empowering them to be the master of their finances. Using personal finance apps such as Easy Bill Pay can help you to stay on top of bills, minimise late payments, track spending, set savings goals and reduce stress. These apps also give you greater control over your finances, so you can claim back more of your life.
Automating things like your phone bills, electricity bills, car payments etc. means that you won’t forget or fall behind on those important payments.
Get Professional Advice
Finally, and perhaps most important piece of advice is not to let things snowball out of control. If you feel like your bills or finances are getting out of control and too much to handle, it’s important to identify the issues and seek help to get on the right track again. This can be done by seeking professional help from a financial advisor or financial counsellor.
Deborah Southon — HTM Guest Contributor
Deborah Southon is an Executive Director and founding partner of FSA Group which offers a range of debt solutions and direct lending services which are tailored to suit individual circumstances and to achieve successful outcomes for clients. FSA Group is listed on the ASX and is the backer for Easy Bill Pay. Easy Bill Pay was originally conceived as a very simple and accessible way to empower people to be the master of their finances, allowing people to stay on top of bills, minimise late payments, track their spending, set savings goals, reduce stress, feel a sense of control and claim back more time to enjoy life.
If you’re interested in learning more about money and personal finance, catch us on the How To Money podcast which you can find on iTunes, Spotify or via our online web-player.
Follow us on Twitter @HowToMoneyAUS, and on Medium at How To Money Australia.
Important Information
The information on this blog and website is of a general and educational nature only. It does not take into account your individual financial situation, objectives or needs. You should consider your own financial position and requirements before making a decision, as we are not an advisory service. We recommend you consult a licensed financial adviser in order to assist you. The information is based on assumptions or market conditions which can change without notice, and this will impact the accuracy of the information provided. This website and blog occasionally provide links to third-party sites, aimed at helping you gather the information required to make an informed decision — we may receive payment for these referrals.