@NRB525 wrote:For those who are timing their credit card payments (is that the statement or the expected due date of the statement payment?) to the timing of your paycheck, this seems like it's cutting it close?
I prefer to have enough extra cash (a form of savings) in my checking accounts so that the timing of my bills and CC payments is not dependent on when my next paycheck is coming in. With the large payments like mortgage or rent, obviously there is some timing consideration, but for regular bills, part of a good financial plan is building up savings of 6 months or more for those items.
With my tracking of autopayments and scheduled payments, if I don't have the money already in my account for bills scheduled to be funded 30 days out, leaving allowance also for monthly utility bills I know are coming, I get really nervous and have to figure out where I need to get that cash from now.
This makes no sense to me. Just because some of us prefer to spread payments out to correspond to when we get our paycheck, has no bearing on our ability to save. Nor does it mean that paying said CC bill is dependent on that check. I'm not even sure how you drew such a conclusion. I, for one, have more than 6mths in savings, and I have a sizable emergency fund. Both of which are separate from my 401(k) and investments.
Like you Open, I never have more than enough to pay my bills in my checking account. And that's also why I chose my bank's bill pay option over setting up separate autopays (I'm also not a fan of any institution having access to my bank account). I can see pending payments as far out as just over a month, so there's no way I'll forget about a pending payment. I can edit payments if necessary, including the pay by date.
@LadyJEsq wrote:
@NRB525 wrote:For those who are timing their credit card payments (is that the statement or the expected due date of the statement payment?) to the timing of your paycheck, this seems like it's cutting it close?
I prefer to have enough extra cash (a form of savings) in my checking accounts so that the timing of my bills and CC payments is not dependent on when my next paycheck is coming in. With the large payments like mortgage or rent, obviously there is some timing consideration, but for regular bills, part of a good financial plan is building up savings of 6 months or more for those items.
With my tracking of autopayments and scheduled payments, if I don't have the money already in my account for bills scheduled to be funded 30 days out, leaving allowance also for monthly utility bills I know are coming, I get really nervous and have to figure out where I need to get that cash from now.
This makes no sense to me. Just because some of us prefer to spread payments out to correspond to when we get our paycheck, has no bearing on our ability to save. Nor does it mean that paying said CC bill is dependent on that check. I'm not even sure how you drew such a conclusion. I, for one, have more than 6mths in savings, and I have a sizable emergency fund. Both of which are separate from my 401(k) and investments.
Like you Open, I never have more than enough to pay my bills in my checking account. And that's also why I chose my bank's bill pay option over setting up separate autopays (I'm also not a fan of any institution having access to my bank account). I can see pending payments as far out as just over a month, so there's no way I'll forget about a pending payment. I can edit payments if necessary, including the pay by date.
I come from the perspective of having some 27 payments for various credit cards, excluding utilities and mortgage, so for me, attempting to line those all up to my paychecks (every two weeks, not twice a month BTW) is literally herding cats. To keep the cats from getting out of control, I build up reserves directly in the checking accounts, in anticipation of known payments.
The advantage of letting the CCC initiate the autopayment, once it is properly set up, it is on THEM to initiate the transaction, they know the transaction is in process, and the risk of forgetting the transfer is removed from my mind. I owe them the money anyway, and they only take out what is on my authorized autopayment.
@NRB525 wrote:
@LadyJEsq wrote:
@NRB525 wrote:For those who are timing their credit card payments (is that the statement or the expected due date of the statement payment?) to the timing of your paycheck, this seems like it's cutting it close?
I prefer to have enough extra cash (a form of savings) in my checking accounts so that the timing of my bills and CC payments is not dependent on when my next paycheck is coming in. With the large payments like mortgage or rent, obviously there is some timing consideration, but for regular bills, part of a good financial plan is building up savings of 6 months or more for those items.
With my tracking of autopayments and scheduled payments, if I don't have the money already in my account for bills scheduled to be funded 30 days out, leaving allowance also for monthly utility bills I know are coming, I get really nervous and have to figure out where I need to get that cash from now.
This makes no sense to me. Just because some of us prefer to spread payments out to correspond to when we get our paycheck, has no bearing on our ability to save. Nor does it mean that paying said CC bill is dependent on that check. I'm not even sure how you drew such a conclusion. I, for one, have more than 6mths in savings, and I have a sizable emergency fund. Both of which are separate from my 401(k) and investments.
Like you Open, I never have more than enough to pay my bills in my checking account. And that's also why I chose my bank's bill pay option over setting up separate autopays (I'm also not a fan of any institution having access to my bank account). I can see pending payments as far out as just over a month, so there's no way I'll forget about a pending payment. I can edit payments if necessary, including the pay by date.
I come from the perspective of having some 27 payments for various credit cards, excluding utilities and mortgage, so for me, attempting to line those all up to my paychecks (every two weeks, not twice a month BTW) is literally herding cats. To keep the cats from getting out of control, I build up reserves directly in the checking accounts, in anticipation of known payments.
If that's what works for you, that's fine. It still doesn't make the way others do it flawed.
@NRB525 wrote:
The advantage of letting the CCC initiate the autopayment, once it is properly set up, it is on THEM to initiate the transaction, they know the transaction is in process, and the risk of forgetting the transfer is removed from my mind. I owe them the money anyway, and they only take out what is on my authorized autopayment.
There is still no advantage of having a CCC autopayment, over a bank's bill pay option. WIth both options, a payment is initiated, and most bank have relationships with the CCCs, so they know the transaction is in process, and there is no risk of forgetting. And just because you owe them the money anyway, IMO, doesn't mean that allows them access to your bank account. And I've heard of many instances where autopay withdrew more than one payment a month or the like. Now, I've heard these stories in relationship to SL payments (which ironically, the double payment won't count as next month's payment, so the individuals just made an additional payment (and given the considerably costly payment, that could really put someone in a bind)), but it was enough to turn me off to such a payment option. But that's just me. What works for you, works for you, and I'm happy that it does, but it's not the only way.
@LadyJEsq wrote:
If that's what works for you, that's fine. It still doesn't make the way others do it flawed.
I try to make all my statements from the perspective of what I would do, and generalizations about what is good financial management. In some of the earlier posts in this thread, it wasn't clear whether other reserves of funds were available or the paycheck was the sole funding source. If that is the case, great, then the reserves are being stored up for a rainy day. Or short cash months.
@NRB525 wrote:
The advantage of letting the CCC initiate the autopayment, once it is properly set up, it is on THEM to initiate the transaction, they know the transaction is in process, and the risk of forgetting the transfer is removed from my mind. I owe them the money anyway, and they only take out what is on my authorized autopayment.
There is still no advantage of having a CCC autopayment, over a bank's bill pay option. WIth both options, a payment is initiated, and most bank have relationships with the CCCs, so they know the transaction is in process, and there is no risk of forgetting. And just because you owe them the money anyway, IMO, doesn't mean that allows them access to your bank account. And I've heard of many instances where autopay withdrew more than one payment a month or the like. Now, I've heard these stories in relationship to SL payments (which ironically, the double payment won't count as next month's payment, so the individuals just made an additional payment (and given the considerably costly payment, that could really put someone in a bind)), but it was enough to turn me off to such a payment option. But that's just me. What works for you, works for you, and I'm happy that it does, but it's not the only way.
And I've had situations where the autopay I set up from my CCC to draw from my bank account wasn't processed correctly, and in that instance is easier to talk with the CCC to clear up the misunderstanding. Yes, you can push a payment from your bank, but my autopayments initiated from my CCC can also adapt to PIF the exact amount on the statement if my charges for the month are less than the fixed estimate amount I have set up for the autopayment. As more of my 20-something cards get to PIF status, having the CCC request that amount becomes an advantage 
@Anonymous-own-fico wrote:
@LadyJEsq wrote:
I'm also not a fan of any institution having access to my bank account
Do you have a bad experience to support this?
I didn't realize I needed "support" for my opinion. 
But, yes, I did have friends who had bad experiences, as stated above.
@LadyJEsq wrote:
@Anonymous-own-fico wrote:
@LadyJEsq wrote:
I'm also not a fan of any institution having access to my bank account
Do you have a bad experience to support this?
I didn't realize I needed "support" for my opinion.
For me, it's just common sense. Why would I ever make it easier for anyone or entity to take my money? In a separate brokerage, it would require (1) a court order, then (2) another order to liquidate securities, since the brokerage Firm will not liquidate without authorization.
Whoever wants my money, I want to make it as difficult as possible. So, tons of brokerages spread out, trusts, etc....
