Dubai: Automatic payments sound like a dream come true—no more missed bills, no more late fees, and no more logging into multiple accounts to send payments.
But what if that dream turns into a financial nightmare? If you’re not paying close attention, auto-pay can drain your bank account, rack up overdraft fees, and even keep charging you for services you no longer use.
How auto-pay works—and why it can go wrong
There are two ways to set up automatic payments:
Either method can cause issues if you’re not actively monitoring your finances.
Beware of these auto-pay pitfalls
How to keep auto-pay from hurting your finances
· Track your payments: Use a budgeting app or spreadsheet to list all active auto-payments and their due dates.
· Set alerts: Most banks allow you to receive notifications when payments are scheduled, processed, or if your balance drops too low.
· Review your statements monthly: Go through your bank and credit card statements every month to catch any incorrect or unnecessary charges.
· Know how to cancel: Don’t assume stopping payments is as easy as starting them. Research how to cancel each auto-payment and set reminders for services you might not use long-term.
· Use auto-pay selectively: Consider setting up auto-pay only for essential bills that have fixed amounts, like rent or insurance. For fluctuating bills, it may be safer to pay manually.
Bottom Line
Auto-pay can be a fantastic financial tool—but only if you use it wisely. If you’re not careful, you could be paying for things you don’t need, getting charged fees you don’t expect, or even overdrawing your account without realizing it. Stay informed, monitor your money, and make sure convenience isn’t costing you more than it’s worth!
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