Avoiding the Pitfalls of Late Payments

by Redeeming Riches on February 11, 2013

Everyone has important bills to pay, whether it is a homeowner, a manager of an organisation or a client. And just as we all rely on receiving our wage on time, it is vitally important that invoices are responded to and money is transferred by the stated date.

Failure to do so will open you up to the pitfalls of late payments, so if there is one piece of debt advice you should adhere to, it is get your finances in order and pay your bills on time.
There are a number of different ways that you can help your case, with the most obvious being direct debit. By setting this payment method up from your bank account with the organisation which you need to pay, you will ensure that the money goes out at the same point every month.

This is particularly useful for regular outgoings, such as your phone bill, gas and electricity, council tax and mortgage. Direct debit gives you one less thing to worry about as you will not have to remember to phone up or arrange payment online.

You just need to make sure that you have enough money in your account every month for the transfer of funds to be successful.

It is a safe and secure way to do your business and allows you to instruct and stipulate when regular payments are made. All instructions are protected by the direct debit guarantee which safeguards the consumer and is provided by all banks and building societies which use the Bacs direct debit scheme.

Some people are worried that direct debit means that they have less control over their finances, but in fact this could not be further from the truth – it gives you more.

You are able to spread the cost of your regular household bills which I mentioned earlier. You might prefer to arrange payment at the beginning of every month so that you know how much money you are left with before your next wage is paid in to your account.

Others opt to spread the payments throughout the month so that their salary does not disappear in the space of a couple of days.

Direct debits are also easy to cancel if you stop using a service or switch providers.

You just need to contact your bank or building society by going in to the branch, or via the phone or internet to ask them to remove the instruction from your account.

Other methods of avoiding late payments all relate back to organisation and getting on top of your finances in the first place. Using a spreadsheet on the computer will allow you to chart your in-comings and outgoings so that you know how much money you will have left at any point in the month.

Keeping a record of your bills, whether this is online or in a folder, is also advised. Here you can check exactly how much you are being charged and you will then have physical copies which you can use to query the organisation with if needed.

Many people, especially if they are struggling, put off opening up their bills. This is obviously counter-productive and does not give you much time to react if there is an issue. Open the letter as soon as it comes through the post and divide them in to two categories – those which need paying at the start of the month and others which need to be sorted in the back half.
If you are short on cash and struggling to pay then you should make sure that you sort out the most important bills first. This includes your mortgage or rent, utility, food and work-related invoices.

Luxuries such as satellite television, broadband and home phone bills can all be cut from your list if finances are tight.
Finally, as well as seeking out debt help and advice it is important to talk to your creditors early if you have a problem. Many companies will work with you to negotiate lower payments if you are struggling, and this could see you spreading your payments out over a longer term to make them more manageable in the present

Google+ Comments

Related Posts