When mapping out a budget, most look for ways to simplify their life and save money at the same time. For many, setting up autopay offers a way to snag a discount and take a recurring task off their to-do list.
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Unfortunately, some companies are pulling back on their discount opportunities. For example, AT&T is reducing its automatic payment discount from $10 per month to $5 per month. But even smaller discounts can add up.
This guide explores how to use autopay to get discounts on your recurring bills.
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How Autopay Discounts Can Help Your Bottom Line
When it comes to paying your bills, any discounts can give you a bit more breathing room in your budget.
Generally, you’ll find these discount opportunities through companies like:
Cell phone service providers
Insurance companies
Internet and cable TV providers
Student loan servicers
Car loan servicers
Other lenders
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The type of discount you might receive from your bill providers varies. For example, your cell phone service provider might offer a discount of $5 to $10 per month when you sign up for automatic payments.
In contrast, lenders might offer a small percentage off of your interest rate attached to the loan. For example, it’s common to see a 0.25% interest rate discount when you set up automatic payments for certain loans.
Not only can automatic payments help you save money each month, but they can also help you avoid a late fee. Since you’ll always pay your bill on time, you can avoid the hassle of paying late fees.
Comb Through Your Ongoing Bills for Autopay Discount Opportunities
The process starts by finding out which of your bill providers offers an automatic payment discount.
In most cases, you can uncover information about autopay discount opportunities on your current bill. These documents often offer guidance on how to set up your automatic payments in order to receive a discount.
If you don’t see any information about automatic payments on your physical bill, then check your online payment account. It’s likely you’ll have an opportunity to set up your automatic payments through your online account.
If you still haven’t found any information about autopay discount opportunities, call the company and ask about this option. In some cases, the representative can provide information to help you take advantage of this discount. But in other cases, you might discover that the company doesn’t offer any discounts for automatic payments.
Set Up Automatic Payments
Once you’ve learned about the automatic payment discount opportunity, it’s time to set up your automatic payments. Generally, this involves linking a payment method, like a debit card or credit card, to your account and providing permission for the company to automatically take your payments each month.
Once you sign up for autopay, the promised discount should be reflected in your monthly bills.
Check In Regularly
While signing up for automatic payments means you’ll never miss a bill, that doesn’t mean you never need to look at your account ever again. Instead, it’s a good idea to regularly review your bills from the provider. Confirm that the charges are accurate and that you’ve continued to receive the expected autopay discount.
If you switch up your banking situation, don’t forget to update your autopay information. For example, if you get a new credit card, you’ll need to spend a few minutes updating your automatic payment details to avoid any disruptions.
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Sources
AT&T, “Guide to AutoPay with AT&T.”
This article originally appeared on GOBankingRates.com: How To Use Autopay To Get Discounts on Your Bills
