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How do you manage multiple CC payments?

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Callandra
Valued Contributor

Re: How do you manage multiple CC payments?


@Kevin86475391 wrote:

I agree with Mamontov's suggestion of opening a checking account at the same bank so that transfers between the two accounts will be instant. At that point as long as you only pay your bills about 1-4 times a month (well 5 or 6 times technically, but give yourself some wiggle room), just make sure to figure out the total you'll need to pay in that session and take out the whole amount from the savings at once.

 

However, I also think you might be over doing it a bit with deposits and withdrawls from your savings in general. I wouldn't suggest depositing money into savings that you know you're going to need within the same month. Again, as Mamontov suggested, I'd only deposit extra money into savings after all the bills for the month are paid. Personally I do have a weekly automatic deposit into my savings account from my checking account setup. However, it's only a small amount I know I won't need for bills that month. Then at the end of the of the month, or whenever I notice my checking account balance getting needlessly high I make an additional manual deposit into savings, but I never deposit money into savings that I expect to use in the next few weeks.

 

I understand your point about wanting to maximize interest but unless you have a really great APY on a very high balance, a few weeks isn't going to make all that much difference in terms of interest earnings. And again, if you're making well over what you're spending - GREAT! and go ahead and deposit some of that right away, but I'd suggest keeping out what you know you'll spend in the near term.


Same here. I don't have anything automatic set up for my savings account (my full paycheck is deposited into checkings) but whenever it gets too fat, I transfer the money. Since savings accounts limits the withdrawals (and let's face it, the interest probably isn't worth the headache or the fees for going over the withdrawal limit), either set up an auto deposit to savings (a chunk you know you won't need in checkings) or just transfer money when your checkings gets too fat. 

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Message 11 of 14
elim
Senior Contributor

Re: How do you manage multiple CC payments?

Message 12 of 14
Anonymous
Not applicable

Re: How do you manage multiple CC payments?

I agree with some of the other posts, a savings account, at least in my opinion; shouldn't be touched unless you really need to.

Checking accounts should be used for bills.

I have 2 savings accounts with Barclays making 1.05% and 1% and I get a bonus for not touching it AND for putting money in it each month.

This is teaching me good money habits too as I know I will get a bonus if I keep putting money in and not taking anything out.

Unless you're making more than that I would recommend looking at other savings account options.

 

And to answer your question, I have an Amex, Chase, Barclays and Citi app on my phone I just check up on every few days and PIF when the charge shows.

I also have autopay on just in case I forget one month but it has never come down to that.

Message 13 of 14
takeshi74
Senior Contributor

Re: How do you manage multiple CC payments?


@vwgrrc wrote:

How do you manage multiple CC payments?


I don't pay bills and credit cards from my savings account.  All that is done with checking.  Savings are allocated and transferred to the savings account in part because of that limitation.

 

You have to determine solutions suited to you based on your priorities.  If keeping funds in a savings account trumps all else then you'll porbably try to have to estimate what your payments will be each cycle and transfer out one time (or as few times as possible) to pay your cards and bill.  If those amounts vary much then that's probably not going to work.  You could also limit the number of cards that you have.

 

I'd suggest using the right tool for the job which is a checking account.  However, again, it's your call to make based on your priorities and where you're willing to compromise.  You have to strike a balance that works for you one way or another.  Is keeping funds in savings more important or your number of cards more important?  These are obviously in opposition to each other.  You don't have to poll us to sort it out.  You have to determine which one is more important to you and which one you're willing to compromise on.  Then you'll have your answer.

 

Something that might help you is understanding how much interest you're talking about.  Even high yield savings accounts still have low interest rates.  Calculate out how much you'd stand to earn on the amounts for your bills and cards if those amounts were sitting in a checking account instead of your savings account.  Is that dollar amount really worth fretting over and is it worth dealing with the hassle over the limitations of the savings account?  Give yourself some perspective on the matter instead of just relying on "more = better".

 


@KayMD wrote:

Another question I also have is that I've seen someone on the forums with a link to an app that allows you to pay your bills from it. Can anyone tell me what app that maybe?  I want to try it!


We have no idea what post you're referring to.  An app by itself can't handle bill payment for you.  The app has to come from your financial institution or it has to entail a service with access to your accounts.  That said, threadjacking is poor etiquette.  Post your own topic in its own thread.

Message 14 of 14
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