When the internet was first invented in 1980-something, the dream behind it was to make every facet of our lives as convenient and easy as possible.
Actually, that’s not true but that hasn’t stopped me from ordering pizza online while taking out some random Facebooker’s mafia before he stomps all over my turf.
One major way the internet has made life a little bit easier is with the advent of online bill paying and credit card statements. Now those of us with a high number of bills to pay can have them automatically withdrawn from our account without having to worry about pesky things like keeping my bills in order or remembering which one needs to be paid on which date. I can also have my credit card statements sent to me via monthly emails, meaning I barely even have to go to my actual mailbox anymore.
But are these services really making our lives that much easier, or could automatic bill withdrawals and online credit statements end up leading to more problems, specifically the need for debt relief, in the long run?
Let’s examine how switching from snail mail to email for your financial statements may be a Good Idea or a Bad Idea.
Good Idea
• It saves trees! With the whole world on a quest to go as green as possible, switching to online statements and payments certainly makes you look good in Mother Nature’s eyes. If that doesn’t matter to you at all, switching to online statement deliveries will at least help you clear up a lot of the clutter they usually bring with them.
• It’s much more convenient! Most people generally have somewhere between 2-3 credit cards that they keep open. Add in bank cards and statements, as well as any other bills you have (cell phone, utilities, cable/internet, etc.) and that’s a lot of unnecessary clutter clogging up your mail, especially considering just about every credit card bill and bank statement comes with a bunch of fliers for some new service or deal they’re promoting.
And since these bills all come at their own time, having a lot of them can make keeping track of your financial obligations a serious pain in the ass. Switching to paying all your bills online just makes things much more convenient and less of an overall hassle.
Bad Idea
• Not paying it any more mind. Of course, the downside to an “out of sight/ out of mind” online bill paying policy is that many companies will try and tack on extra fees while you’re not worrying about their bills, especially on older credit cards you may no longer use. In addition to fees for going online only, many card companies feeling the heat of the recession are looking to raise all kinds of fees right under your nose.
• There goes your credit score. One more serious misstep many who go online only can make is deleting every bit of email they get from creditors and their bank, except for their statements. While it’s true that most of that stuff is spam anyway, this is also how many people lose track of the annual fees that may be added to their accounts.
Before you know it, those unpaid fees start to pile up until BOOM, there goes your credit score. Now, you’re left with a pile of unpaid bills you never knew you had, and a report in serious need of credit repair.
So what’s it to be in the end? Do the benefits of paying your bills online outweigh the potential risks? I certainly think so. Just make sure to continue to monitor at least some of your emails and statements so you don’t fall into their fee traps.
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