Pay bills last minute - grace periods & float
Posted by Cap in How To's and Guides on May 9, 2005 |
Recently a friend of mine, who doesn’t use online banking very much saw that I was scheduling some payments to be made online. He noticed that I was scheduling a payment that’s due about a month later, to be paid 2 days before the due date. He asked me why I did that and he quickly regretted—because I wouldn’t shut up afterwards.
Basically, I pay all my bills at the very last minute. Credit card bills, utility bills, you name it—if I can pay it at the very last minute before I’m penalized, I do it.
Some of you know why I do this, some of you don’t. Some people hate having debt, some people hate using credit. So they either use cash or debit cards and pay off their bills immediately. I pay with cash too, but I pay my bills at the very last minute possible.
I’m using grace period and float time to my advantages.
This is a good time to point you towards the disclaimer, since paying bills late and paying bills last minute are two complete different things. Paying bills late is definitely a no-no.
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August 29th, 2005 at 1:19 pm
I started doing this in the good old days(?) when interest rates were at 10% or more in money market accounts. If you have the money deducted automatically from your checking account as opposed to paying it yourself online they usually take it out on the last day. You get two more days of interest in there. And you don’t need to be near a computer (while on vacation, etc.) when the bills come due.