Debt Management Made Easier with Online Bill Payment

Life is so busy these days that it has become increasingly more difficult to manage all of our daily tasks effectively, especially when it comes to paying bills. Who has the time to write out checks and lick stamps anymore? Not only is it time consuming, but it is also much too easy to get bogged down and disorganized with all of the paper clutter. Unfortunately, creditors and lenders have little room for sympathy when consumers cannot or do not pay their bills on time. Luckily, there is a solution to both of these issues. Electronic payment has become increasingly popular as a payment method that facilitates debt management and saves time. NFCC-approved consumer credit counseling services (CCCS) agencies like ours stress the high correlation of good organizational skills to managing debt effectively.

How Can Online Bill Pay Aid in Debt Management?

In today's world, electronic payment methods play an important role in effective debt management. So, how exactly do they work? Electronic payment, or online bill payment, provides a paperless way for consumers to make payments on their credit accounts. Online bill payment is offered through several different sources:

Online bill payment is offered through several different sources:

• Banking institutions
• Private companies offering the service to individual customers
• Personal finance software programs (i.e. Quicken™ or Microsoft Money™)
• Specialized websites designed for online bill pay
• Portals designed for online bill pay

Debt Management with Online Bill Pay – Pros and Cons

• Save Time — You can cut down on the time it takes to write out your checks, lick stamps, and address envelopes.
• Save on Cost — Save on the cost of postage stamps. On average, each household receives fifteen bills a month. Over time, the cost of postage can really add up.
• Avoid Late Charges — If you set up your online bill payment account for automatic withdrawal from your banking account, you will never have to worry about a payment being received late or being lost in the mail resulting in late fees.

• Assess the Risks — Although the risk is very low, there is always the possibility that the security of your online banking transaction will be compromised. Phishing, a technique that has become increasingly popular with computer hackers, works by soliciting personal account information from unsuspecting account holders. Therefore, it is important to be vigilant and review every banking transaction you conduct online.
• Always Check for Errors — Because online bill pay is so reliable, it is easy to forget to check your payments for accuracy on a regular basis. Proper debt management requires diligence, so always check your statements to ensure that the transaction has occurred and that the amount is correct.

Credit Counselors Offer Tips to Protect Yourself

• Never respond to any unsolicited e-mails requesting credit account information online.
• Recycle your online passwords every month to two months.
• Review your online banking transactions and statements on a regular basis to ensure that any activity on the account is legitimate.
• Load anti-virus software onto your home computer.

Credit Counseling and Online Bill Pay

Online bill pay can help out tremendously when it comes to paying your bills on a regular basis, but you may still need to address other financial concerns. If the funds are simply not available in your banking account, you may need to seek out credit counseling services from a professional Consumer Credit Counseling Service agency like ours who can help with all of your debt management concerns. A credit counselor can negotiate with your creditors to lower your payments and help you effectively manage your debt.

Whether you are enrolled in a debt management program through one of our credit counseling service offices, via phone or through internet counseling, you could benefit from using a form of online bill pay known as ACH (Automatic Clearing House). This payment method helps consumers manage their debt by offering a quick and error-free way to pay creditors. Contact our local Consumer Credit Counseling Service in your area today for an in-depth consultation and learn how you can take control of your financial situation by reducing debt and being an educated consumer.