How to Stay in Control of Your Finances with Automatic Payments

Between housing payments, utilities, student loans, and streaming services, managing the bills can be a hassle. That’s why automatic payments and Bill Pay can be helpful for the essentials, and to ensure you never miss a payment. However, the convenience can come at a price, especially if you adopt a “set it and forget it” mentality.

That disconnect can be costly as a study revealed people spend, on average, 2.5% more than they estimate each month. In total, that difference is nearly $1,600 each year. By understanding both the pitfalls and the power of automatic payments, you can make the tool work for you, instead of against you.

The Debt Downside

With four in five adults reporting  that they are enrolled in a subscription or auto-pay service, it can lead to blind spots in your financial picture. As money leaves your account automatically, it’s easy to lose track. Small price hikes from a streaming service or an annual renewal you forgot about can add up over time. One study estimates that people waste more than $200 a year on unused subscriptions.

It’s important to regularly review and audit these automatic payments for changes in price, usage, and added fees. A recurring payment you didn’t account for could cause you to overdraw your account. Regular reviews also allow you to spot any fraudulent charges and address them quickly.

Taking Control with a Financial Command Center

The solution isn’t to cancel every subscription and go back to mailing checks. The key is to manage your automatic payments from a single, secure hub. While only 15% of adults in the U.S. use their bank’s bill pay service, it is one of the most effective tools.

Instead of juggling multiple apps and passwords, use your online and mobile account as a single dashboard to see exactly where your money is going each month. This clarity puts you in the driver’s seat by allowing you to make informed decisions about what to keep or cancel.

Through Bill Pay, you can set fixed, recurring bills, like rent or mortgage, automatically. This allows you to know when the payment is being sent and avoid late fees. For variable bills, like utilities, it acts as a great way to review your bills before sending the check.

Bringing your bills and subscriptions under the umbrella of your bank ensures you stay on top of your payments and reduces your risk. Instead of storing your debit or credit card information on third-party websites, increasing your exposure to potential data breaches, your bank handles the payments for you and allows you to easily see your cash flow.

You can set up Bill Pay online with your WSFS Bank account, by talking to a WSFS Associate or when visiting one of our banking offices.