There's no question, the verdict is in; (lack of organization) next to just not having the funds is the killer when it comes to paying bills on time.
While the digital age has helped a great deal in allowing us to keep accurate records and to easily schedule electronic payments to creditors, many of us still rely solely on writing checks to pay our monthly bills. If you are one of the "do it yourself" bill payers, the following system can help you to perhaps avoid falling into mortgage, rent or credit card delinquency, all the way down to avoiding the more severe consequences for failing to respond in a timely manner to things like jury duty notices and license renewals.
Here's an old fashioned solution that is timeless yet works perfectly with little effort on your part.
First, it's imperative to break the old habit of letting mail sit for days without opening it. I know what you're thinking--just no time or inclination to do it more frequently; and who wants to get depressed seeing how much is owed out? Okay, if you can't get to first base, you're done!
But for those who can own up to it and now want to take control, please read on.
Sort Your Mail
If you don't receive about one hundred pieces of mail per day, than how long could it possibly take you to sort it into one of the following three piles? So start with junk mail which you might immediately throw right in the garbage can, then bills and important notices, and lastly--other mail of interest yet not an immediate priority.
Processing your (Bills)
Here's the key to organizing your bills smartly. Do the following with each bill: open the envelope and examine it to see if it is accurate and check to see if by chance, you've accrued late fees. If so, you might want to set that bill aside with the intent of calling your creditor to make immediate payment arrangements. However, after checking for accuracy, put the bill back in its envelope and write the due date about two inches down from the upper right hand corner (on the face) of the envelope. In the lower left-hand corner, write the minimum due or the actual amount due for bills where the entire amount is actually due.
Where to Store These Bills
If you look around your house, you might come across just the right size box that can accommodate bills of all sizes. If not, plan on visiting an office supply store and purchase a small plastic box. Typically, most bills are delivered in envelopes that measure no longer than 9.5 inches. When you stand the envelope up in the box, the height of the envelope will most likely not exceed four inches in height. After you've obtained the box and have your bills marked with the due dates on the face of each envelope, insert the bills in the box and in chronological order by due dates. Importantly, do not place the box inside of a drawer and forget to look at it daily.
That "out of sight, out of mind " attitude is the killer when it comes to paying bills on time. It is highly advisable to place the box somewhere in view. Perhaps on top of a desk or clothes dresser, but again, never in a concealed place. It is also wise to get in the good habit of looking at the due dates each day and plan to write checks as soon as you have the funds available. Many folks attempt to mail bills at least ten days in advance to ensure on-time payments.
Goals Accomplished
With this easy, no-brainer method, you will now be able to identify at a glance when bills are due as well as having the advantage of being able to quickly tally your monetary needs for the month, and to set your budget accordingly. Admittedly, paying bills is an emotionally driven event for many people struggling just to keep up from paycheck to paycheck. However, there's no need to fall prey to bill collectors merely for not having a proper method of organization in place to be able to pay your bills on time.
