Advantages

Let's start with the environment. A report from Wells Fargo says that if everyone in the U.S. paid their bills online, 18.5 million trees would be saved each year. That represents enough lumber to build 216,000 single-family homes. Not a bad advantage.

A more personal advantage of online bill paying is the way it organizes your finances. You can see at a glance which bills you've paid and when you paid them. And in the event you need proof of payment, you have it on a moment's notice. You can see at a glance what you've paid and when you paid them.

You can select your bill payment dates, create a log of your regular payments and make multiple payments at one time if you wish. You don't lose control with online bill paying, you gain control. And a sense of personal pride because your finances are so much more orderly.

Some services allow you to set an "alarm" which alerts you when your account drops to a level you determine so as to avoid overdrafts.

Possibly the greatest benefit of online bill paying is the matter of on-time payments. When you drop your mortgage check into the mail you cannot assume your payment has been made on time. Lots can happen between that moment and when it is certified as received by your lender. Online bill paying can shorten significantly the time between sending and receiving. If online bill paying saves you even one late fee, you're way ahead financially.

Pitfalls

Security should be your biggest concern when it comes to online banking. Never use a public computer or a "hot spot" wi-fi connection for financial transactions. Make sure you keep your anti-virus up-to-date. Run Windows Update regularly to keep current on the latest security patches.

Whether you bank online or offline, you need to access your bank account regularly (daily if possible) to review all transactions. If you do not recognize a charge, report it immediately. Your bank is under no legal obligation to provide a refund or remedy after 60 days.

In researching for this article I asked many people about their online bill paying experiences. I received no negative reports. In fact, most said it's so fabulous they'd never go back to the old way. However, I cannot guarantee your experience will be the same.

Remember if you try it and don't like it, you can always cancel and go back to paper, pens, paper clips, return envelopes and postage stamps.


© 2004 The Cheapskate Monthly. All rights reserved. Used with permission.

 "The Cheapskate Monthly" was founded in 1992 by Mary Hunt.  What began as a newsletter to encourage and empower people to break free from the bondage of consumer debt has grown into a huge community of ordinary people who have achieved remarkable success in their quest to effectively manage their money and stay out of debt.  Today, "The Cheapskate Monthly" is read by close to 100,000 Cheapskates.          Click here to subscribe.

Seeking financial harmony in your marriage? Read Mary Hunt's book Debt-Proof Your Marriage published by Revell.