How to avoid late payments on your credit file.

This may be something that some of you already do, however it's something that many people don't think about doing and it can save your credit file and help you manage your money.


How to never receive a bill or be late paying your bills.


This is essentially how I manage paying my bills.

1. Work out what bills come in on a regular basis
2. Determine if the bill is a set amount or if it varies (think - mobile phone plan versus electricty)
3. Work out how much the bill amounts to on a paycyle basis. ie: monthly bill  and you are paid weekly = 4.3 weeks, quarterly bill on a fortnightly basis = 6 fortnights
4. Once you know what your paycycle amounts are, set up an automatic b-pay payment to come out of your account the day after your pay goes in (or the day of if you take your pay out straight away). ie: electricity $125 per fortnight (bill average $750 per quarter).  Set them up as a periodic payment with no end date

What this all means.  Essentially you will end up always paying your bills on time.  You are likely to either get a very small, or no bill at the end of the month or quarter for variable bills (ie: electricity) and no amount owing for regular bills.  There are no nasty suprises at the end of the month or quarter.  If you set your loan payments up the same way it means that you're able to spend whatever is left in your account knowing that all of your bills are paid and the rest of the money is for YOU!!


Best of all, you'll never be 14 days late in paying your account so you will protect your credit file.