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.