Blog

Don’t Be a Slave to Recurring Expenses

By Debt.ca on December 21, 2013 No Comments

Pre-authorized payments have made paying your monthly bills easier than ever. No fuss, no muss – your balance owing is automatically debited from your bank account, so you never have to worry about paying your bills late again. Although this is a blessing, it can also be a curse. As companies push their customers to switch to e-billing, it’s easy to adopt an “out of sight, out of mind” attitude and forget about your bill payments. Not only can this leave you open to being overcharged, you can find yourself paying for services you don’t even use. Here are some tips to avoid being a slave to recurring expenses.

Watch Your Bills

Even though you may no longer receive your bills by snail mail, it’s still a good idea to take the time to review your bills each month. Compare your current month’s bill to the previous month to see if there are any changes. If you’re being overcharged, it’s a lot easier to rectify it for one month than an entire year. If you find yourself not bothering to check your bills online, it may be worth switching back to receiving your bills from Canada Post. You probably aren’t as likely to ignore an envelope that arrives over an email.

Avoid Pre-Authorized Payments

Pre-authorized payments have made paying your bills a breeze. Here’s how it works: the funds are debited from your bank account on a specific day each month (for example, the 15th of the month). Some companies are going as far as offering a chance to win cash prizes just for signing up for pre-authorized payments. Do you really think companies would be pushing you so hard to sign up if it didn’t benefit them? If you’re been overcharged for something, it’s a lot harder to get them back if the funds have already been debited from your bank account. The best the company can probably do in this situation is offering you a credit. If you plan to cancel the service, you may not even be able to use the full credit, leaving your hard-earned money in the pockets of large corporations.

Contracts

More than ever service providers like Rogers are pushing its customers to sign long-term contracts for instant savings. Although you may save money short-term, if you only end up watching 20 channels out of your deluxe 500 channel package, did you really spend your money wisely? Worse yet, if you run into financial distress (for example, you become ill or lose your job), you’ll still be on the hook for paying for the duration of the contract. Think twice before signing a contract to make sure it’s worth your while.

If you signed a contact and money is tight, you can often scale back your services. For example, if you have cable you may be able to downgrade to basic cable. Although you’re still paying something, it’s a lot better than paying full price, especially when you’re out of work.

Review Your Sunk Costs

Investopedia.com defines sunk costs as “a cost that has already been incurred and thus cannot be recovered.” Sunk costs can represent a significant portion of your household’s budget. Some common examples of sunk costs include home insurance, gym memberships, and mobile phone contracts. With New Year’s right around the corner, gyms will be looking to lure new customers looking to get in shape. Think long and hard before signing on the dotted line to make sure you’ll get your money’s worth.

You may not use your gym membership year round. If you plan to take the summers off, you can often put your membership on hold. That way you can save your visits to the gym when the weather is dismal outside and not spend your money on services you don’t need.

Debt.ca

Admin


When buying a car, does leasing or financing make the most sense?

By Rubina Ahmed-Haq on April 25, 2019

Buying a car is an expensive proposition. You want to do your research and make sure the vehicle you’re purchasing is best for your needs.  The decisions don’t stop there, though. Once you’ve chosen the car that best suits your lifestyle and budget, you must decide how you’re going to pay for it.  There are…

Start Your Retirement Savings Plan Today

By Rubina Ahmed-Haq on April 23, 2019

The younger you are, the harder it can be to imagine what retirement is going to look like. For some, that major life event is 40 or more years away. The reality is this: the earlier you start retirement savings, the more likely you are to have a successful retirement, one that’s filled with all…

Discover the best budgeting apps for Canadians

By Rubina Ahmed-Haq on April 18, 2019

Technology can be a force for good when it comes to budgeting and saving. Canadians like you who want to spend money wisely can use apps to keep you on track. With the power of budgeting in the palm of your hand, there’s no excuse for being unable to keep your finances in line. Here…

Incremental Budgeting: Gaining Capital Over Time

By Sean on April 16, 2019

Incremental budgeting is a budget type where you add a specific amount of capital to a previous quarter’s or period’s budget to permit slight increases. This method is mostly used as budgeting for businesses. Although this budget method is simple (much simpler than activity-based budgeting), most financial professionals won’t recommend it. The main reason is…

No Comments Leave a Comment  

Leave a Comment

Free Savings Estimate

How much do you owe?

$100,000

$5,000
$100,000
Live Chat
Welcome to our Live Chat
Agents are not available at this time. Please leave a message. Thank you.
First Name
Last Name
Phone
Email
Postal Code
Debt Amount
 
PHP Live! powered