Say… you received your bill(s)/statement, look over it and are ready to lodge payment.
Better to pay in full on due date, or installment plan by the due date… while earning bank interest?
(Which one puts you financially ahead?)
Is It Better to Pay Bills in Full, or by Instalment Plan?
capslock janitor on 19/05/2023 - 21:28
Last edited 19/05/2023 - 21:43
Last edited 19/05/2023 - 21:43
Comments
Only for >$1million bills….
Neither. You ask Congress to raise the debt ceiling, and then direct the Treasury to issue more Bonds to "pay the bills".
The only bill I pay by installments is council rates. Auto bpay setup to transfer $200 every fortnight on pay day. I don't miss the money and when I get the rates notice it's already covered. Nice!
You’d be better off transferring that $200 into a HISA, then schedule the bill to be paid on the due date.
Sadly I know that is the best option but I genuinely can't be stuffed for the small amount and then taxed at max rate. This way it's set and forget and no further implications.
We also do this with electricity bills - $30 per week. Much easier!
1000 dollars at 4.5 for ten days is 1.45.
ever seen mr inbetween?
telstra: u owe us money
me: i dont pay bills
telstra: uhh i need to you pa….
me: i dont pay billsHave to calculate per bill. Any bill that let's you pay in instalments without extra fees is definitely pay in instalments. Any bill that requires extra costs to pay in installments… Calculate the difference between paying off full and instalment total vs how much you save/earn putting that same amount in offset / savings Ac count.
without fees-
mathematically, which would earn more?Sorry. Mistook your question. I thought you meant if a bill could be paid in installments not pay in installments yourself before due date. For example Council Rates, can pay a whole year or in installmentments no penalties. Defi itely pay in installments as your money can earn / reduce interest in the bank vs paying everything in full and not earning anything. However if it is I have a bill by xx date. I can pay in full on cx date or I can put $50 towards it every week until the due date then definitely pay in full by the due date because if you pay any earlier you are also not earning / reducing interest.
Anything that can damage your credit rating or lose you an on time discount pay just before the due date. Anything else pay as late as possible as long as they don't charge you interest.
I always pay bills in full as soon as they arrive, you never know things happen people have accidents or illness end up in hospital, bills don't get paid, best to always be up to date.
Yep pay in advance or on time
Totally depends on the advantage for paying in full or the penalty for paying in instalments.
I only pay my council rates and my car / home insurance in instalments due to them having no penalty -> I earn a tiny bit of interest while keeping the money in my bank account.
Exactly.