This month, the Midday Money Show has focused on rebuilding after financial hiccups, setbacks, or even catastrophes. Life happens and sometimes we have no control. We can always, however, control our response. Playing the victim and doing the ostrich dance (burying your head) may seem appealing. It’s just not very productive. Reclaiming victory by learning from the misstep is a great way to emerge stronger on the other side.
While producing the show on credit repair, I revisited a great post from the Financial Samurai discussing the effect late payments pose to your credit score. Fair Isaac Co – the great folks behind the FICO score – has this actual formula under lock and key. However, this post shed a bright light on how much havoc one 30-day late payment can potentially cause. According to the example, a person with a 720 credit score can drop to 525. That’s nearly 200 points. Really?
On time payments just became envogue (if they weren’t already). The Debt Free Divas shared strategies we use to pay our bills in a timely fashion.
Just in time scenario: As soon as I receive the bill, I immediately schedule the payment through my credit union’s online bill pay service.
Mixed case strategy: I use a bill paying calendar to write in due dates. I also receive text message alerts. Just recently, I signed up for auto-bill pay, but only for certain creditors with which I am comfortable giving electronic access to my bank account. I’ve also request a due date change to make sure that all bills are due around the same time.
Seeded control: With a hectic schedule, I employed the auto-payment service and use the text/email alerts to remind me to reconcile my bank balances. I don’t want to turn full control over my monthly expenses to an automated system. I do save a mint on late payments this way!
This Friday, do you have any good tips for remembering to pay bills on time?