Interrupter CheckmarkInterrupter IconFacebookGoogle PlusInstagramGroupRamsey SolutionsTwitterYouTubeExpand MenuStoreCloseSearchExpand MenuBackStoreSign in

Ask Dave

Automatic Bill Pay is Great!

Jay on Twitter wants to know what Dave thinks about automatic bill payments. Dave loves them—with a caveat.

QUESTION: Jay on Twitter wants to know what Dave thinks about automatic bill payments. Dave loves them—with a caveat.

ANSWER: I love them. I have tons of them. I have mutual funds that automatically tap my checking account. All of my utilities automatically zap, and that way, I never miss the little early payment discount or am out of town, miss the bill, and accidentally get my lights cut off or something like that. I like automatic discipline.

I would never allow someone I was in a fight with—an adversarial situation—to have access to my checking account. If you’re dealing with a collector and you’re settling a dispute on a credit card, never give them that because they’ll clean you out. But your electric company, water company, cable company, maybe insurance, and your investments—all of those autodrafts are just a good way to take care of business. I don’t think I have any utilities that aren’t automatically drafted. I love autodrafting.