The Importance of Paying Bills

• How you pay your bills, whether it's on time, late or not at all, impacts your future. Your financial obligations, from utility bills to mortgages, are all tracked and listed on credit reports. These reports are used by your current and potential creditors and employers to determine how responsible you are when it comes to handling money.
  
  

What Exactly is a Bill?

• Bills are what you incur any time you acquire a product or service with the obligation to pay for it at a predetermined time during the month. Utilities such as telephone, electric, water and other necessities must be paid each month, as well as loans for cars and houses. Credit card accounts are also due each month. Other bills, such as property taxes might be due quarterly (four times a year) or semi-annually.
  
  

Ways to Pay Your Bills

• Along with cash, money orders or checks, bills can also be paid by an Electronic Funds Transfer (EFT) from a checking or savings account. Most banks offer a Bill Pay service for a fee that organizes your accounts for any participating creditor and automatically distributes payments to them on set dates throughout the month. Credit cards can also be used to pay bills.
  
  

Keeping Things Organized

• Along with paying bills, you also need to keep record of what you have paid. Use expandable file folders or a binder to hold all your receipts and paid invoices. Keep your checkbook balanced and track your debts, either manually or with financial software, such as Quicken or MS Money.
  
  Organizing your financial records not only helps you maintain your sanity but also gives you a paper trail if any payment or balance due ever comes into question.