Bill-Paying Services

Posted By: Dr. Frugal in Budget on 08/07/2007 at 06:47:01

If you use a bill-paying service, all your bills are sent directly to the bill-paying company, which makes payments for you and sends you a monthly transaction report. They also charge you a fee, typically around 10% of the total you owe. Bill-paying service don't actually lend you money, so you still have to have enough cash on hand yourself. At most, they offer the incentive for exercising a little discipline and the ease of writing a single check instead of several each month. Evaluate the cost of keeping service like this carefully. If you owe $5,000 and the bill-paying service charges 10%, that's $500 you'll be paying for the convenience of having them disburse the money you send them every month.

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