Don't Waste Your Money: The hazards of auto-pay

Posted at 6:21 PM, Apr 20, 2016
and last updated 2016-04-20 18:21:35-04

The easiest way to pay recurring bills these days is auto-pay. You'll never be late, and you don't have to rush to get a bill paid.

But that convenience comes with a risk.

A new report in MSN Money warns of hazards, including: 

  • If you are short of funds, you'll have a bounced account, and other checks  may then bounce too.
  • You could be hit with continued bills even after canceling the service.
  • You could miss a rate hike, and not notice the cable bill went up $20 a month.

If you regularly monitor your incoming bills, and how much you are paying, auto paying is a great service. But you have to monitor it.

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