Definition
A system that pays your bills automatically from your bank account or credit card on a set date. Helps avoid late fees and missed payments.
What to consider
- Set it up to save time and avoid missing any due dates.
- Double-check that you have enough funds in your account when payments are scheduled.
- Review your confirmations to catch any errors early.
Real world scenarios
- Kelsey automates her monthly utility bills, avoiding late fees and freeing up headspace for other tasks.
- Darren forgets fewer payments now that his cable and phone bills are auto-drafted from his checking account.
- Ana sets up auto-pay for her gym membership, ensuring she never misses a renewal date or gets penalized.
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