Online bill
paymentConvenient.
You may have the option to automate
outgoing payments or manually make
the payments using your bank or
credit union’s online banking portal.
Minimizes chances of being late if
bills are set up for automatic
payment.
If set up through your bank or credit
union, you may receive warnings or
alerts if you do not have enough
money in your account to pay a bill.
May include options for setting up
payment from cell phones/smart
devices.
Saves time.Takes time to set up and learn.
Possible risks of overdraft.When cash is short: Prioritizing bills
Even when you cut spending, you may still find yourself to be short on cash.
But when you’re trying to decide which of your obligations to pay first and bill collectors are
calling, it can sometimes seem easiest to just pay the “squeakiest wheel.”
You are responsible for paying all of your obligations on time. But when you have cut out
everything that is not a “need” and truly do not have enough money to cover your obligations
and living expenses, you may have to make a short-term plan to get through the month.
Sometimes this may involve paying some bills late. Sometimes it may mean missing a bill. This
can be an extremely stressful situation, but it requires careful, clear-headed thinking. Part of
making this short-term plan involves understanding the consequences of delaying paying
certain bills. And sometimes it means ignoring that squeaky wheel for a short period of time
until you can build a plan for repayment.
For example, what are the potential consequences of the following scenarios?