Automatic payments are great for simplicity. You don’t have to worry about missing a payment. You can rest easy knowing your bills are paid on time. And you have less monthly hassles to worry about.
But is all that simplicity actually costing you in ways you don’t realize?
Automatic Payments Might Be Quietly Eating a Hole in Your Wallet
Sure, automatic payments are incredibly convenient. But unless you’re keeping a close eye on them, they can pile up quickly, resulting in a lot of excess money going out each month that doesn’t actually have to.
Automatic Payments are Easy to Lose Track of
Subscription services are a perfect example of automatic payments that are super easy to lose track of. $5 for cloud service here, $12 for Netflix there, and another $10 for your favorite music subscription platform. It doesn’t sound like much when you’re signing up, does it? But those small subscription fees can quickly add up, and before you know it, you’re spending over $100 a month in added services.
Unless you’re keeping a watchful eye and tracking every transaction that goes through your account, you’re likely to lose track of all those automatic payments and just how much they’re costing you.
Automatic Payments Could Result in Overdraft Charges
When you aren’t keeping an accounting log of your incoming and outgoing financial transactions, you never truly know exactly what you have and when. And grabbing that balance at the ATM isn’t always accurate, either. There could still be transactions pending that aren’t showing on your account yet – meaning you have less money than that ATM receipt shows you do.
When you have your services set up on automatic payments, it’s easy to forget what comes out when. And that could mean significant charges in overdraft fees should one of your subscription services hit your account when there’s not enough funds to cover it.
You especially have to watch out for automatic payments that occur every 30 days rather than on a given date of the month. Why? Because there are sometimes more or less than 30 days in the month. That means your payment could actually come out of your account within an entire week of the original payment date.
Find Those Automatic Payments for Subscriptions That are Eating a Hole in Your Wallet
If you’re ready to purge those automatic payments that are sucking you dry, the automatic payment finder, Trim, can help.
When you connect your accounts to Trim, it analyzes them to find recurring subscriptions and determine where you could be saving more money. And it does it in a matter of minutes! You can even cancel your subscriptions, negotiate your bills, find better car insurance rates, and so much more with Trim.