Q: Can automatic bill payments help with my personal finances?

A: One of the most sure-fire ways to improve your credit score is to set up automatic bill payments for all fixed, recurring expenses and debts. During the course of a month, things can happen that cause you to forget to mail in a check to the cable or electric company, and before you know it, you have late fees and maybe even shut-off notices -- all because you were forgetful. If it wasn't an issue of you not having the money in your checking account, then this could have been easily avoided by establishing automatic bill payments. It takes the hassle out of paying your monthly bills and also establishes a solid history of consistent, on-time payments, which is good for your credit.

Of course, you have to make sure you always have enough money in your account, or on your credit card(s), to make these payments. Otherwise, overages or NSF (not sufficient funds) can cost you even more money, and do a real number on your credit rating. Still, for most people, automatic bill payments can be a great help to their personal finances.

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