Estimated reading time: 14 minutes
Prevent financial headaches by handling missed bill payments with confidence. Learn how to avoid costly mistakes and maintain financial stability.
Understanding how to avoid personal finance mistakes before they happen will save time, money, and your sanity.
Sometimes, financial mistakes can be costly and a big lesson for those involved, depending on the mistake.
Missed Bills Spell Disaster
When it comes to a missed bill payment, you must take the situation seriously because it can come back to haunt you.
Since getting married, we’ve had one missed bill payment: paying our city taxes when we moved into our first house.
Of all things, we missed paying, but we were new homeowners, and there was so much going on with the move and legalities of it all that we forgot.
Missing your bill payment is NOT an excuse.
All it took was that one missed bill payment for us to realize that we needed to get a bill payment system in place quickly.
We were never late paying bills when we dated and weren’t about to start while married.
Consequences Of A Missed Bill Payment
Missing one bill payment or even a few could have the following consequences;
- Affect your credit score if reported – Do you order your free Credit Report each year?
- Potential loan/credit application denial
- Late fees = more money
- Start the ball rolling for debt pile-up
- Shut-off or removal of services by the provider
A recent email from a CBB reader prompted me to write this post.
The last time I wrote about bills, Mrs. CBB and I made an over-payment to Reliance Home Comfort.
Although some of you might think that’s not so bad it can be for someone who needs the money.
Related: How do you pay your bills?
The company tells you to pay less or nothing the next month when a bill payment is due.
A simple mistake like this could mean another missed bill payment because you don’t have the money budgeted for error.
If you don’t have back-up emergency savings to cover mistakes such as a missed bill payment, you’ll have to come up with another way to pay the bill.
Missed Bill Payment Tumble Effect
One missed bill payment could cause a tumbling effect for someone living to pay cheque to pay cheque or who has little to no emergency savings.
The tumble effect is when one error can cause many problems for everything else down the bill payment list.
Dear Mr.CBB,
My fiance is horrible with paying his bills and I’m worried about how this will affect our marriage.
Recently I found out he didn’t pay for his cell phone bill which meant I had to pay it for him because he ran out of cash.
The money he has in his bank account he spends every month to pay bills and for whatever else he needs.
When the money is gone it’s gone which means if he misses a bill it won’t get paid until the next month.
He doesn’t budget like I do and I’d prefer not to bail him out every time he fails to look after his financial situation.
What can I do to make him realize this is an important topic?
I want to buy a house in the future with him but with the rising costs of house prices and everything else we may never own and only rent if this keeps up.
Thanks for any suggestions.
Carol.
A budget doesn’t help you pay your bills on time; however, it will hold you accountable to your spending habits.
You will learn about how much money you earn, your net income, and how much money you have to spend every month, including an allowance schedule.
Making the time to set up a budget, understand how a budget works, and work to make it balanced every month is a great start.
The best way to avoid the missed bill payment tumble effect is to have;
The last thing you will want to do is get involved with advanced Pay Day loans, overdraft protection, or using money from your retirement investments for a bill payment.
One will most likely keep you in the debt loop, and the other will pinch cash from your future retirement days, commonly with a fee attached. Avoid these at all costs if you can.
Related: Should I cash in my RRSPs to pay off debt?
Automate bill payment
The hands in your bank account method doesn’t work for everyone because you authorize companies on your behalf to remove money for a bill payment. Once you set u your automated bill payment the work is done for you.
You no longer have to worry about paying your bills on time; however, you still have to worry about making sure the money is available in your bank account.
A missed bill payment and insufficient funds to pay for one is just as important.
Plus, even automated banking is not error-free, whether the bank’s fault or the billing company’s.
Bill Payment Express Schedule
The best way to do a bill check is to create an express payment schedule, especially for couples.
I will write a blog post about using a bill payment express schedule and offer you a free printable to add to your budget binder. (Keep an eye out for this in the coming weeks)
This bill payment express schedule is for those of you who like the old-fashioned pen-and-paper method of tracking bills as we do, combined with our Excel budget, to stay on top of our monthly finances.
Certainly, you could use an online bill payment express schedule or document that you can review and edit, but we found a quick paper visual works best.
In the meantime, I wanted to touch on the bill payment schedule, which has helped us remember to pay our bills on time.
We’ve automated some of our bills, but we still manually pay our taxes, hydro, Rogers, water heater, and credit cards.
A bill payment schedule is simply a month-to-month bill check calendar of what needs to be paid and when.
Once you pay the bill, you tick off that it’s paid for your reference.
We find this to be the easiest route for our busy schedule.
We keep a list posted in our office, and it’s maintained by both of us, which helps us both see what is paid and what isn’t.
A bill payment account also helps us track what is paid if we log into our bank app on the Samsung 7 or online via the laptop or desktop.
How To Pay A Bill
If you’ve moved out of your parent’s house for the first time, you might not understand how a bill payment is made.
It’s important to review the bill payment methods with every company you deal with so you know what you can and cannot do.
Add essential info i to your payment schedule so you remember.
- Where can I pay my electric bill?
- How do I pay my city taxes?
If you’re unsure how much you should be paying, you can check your outstanding bill payment amount online or call the company.
All bills and reddit cards have a toll-free or local number you can call to ask customer support questions.
Most bill payment services allow you to;
- pay in person
- pay by cheque
- pay in cash
- pay by credit card
- online bill payment, including mobile apps
- snail mail payment (mail it in)
How to deal with a missed bill payment
Don’t panic if you’ve made mistakes; we all make them.
If you’ve received a phone call about a missed bill payment, received a new bill with double the amount due, or realized it on your own, you must do one thing first: call them.
You may feel better about that missed bill payment once you make the phone call to explain the situation.
Most often, they will require you to clear up the outstanding balance with the next bill, which means two payments in one.
If you don’t have that money in the bank, you will have to pull from your emergency savings or find a way to come up with the extra cash during that grace period.
Late fees, if incurred, must be paid, and hopefully, this will be the last time.
If you’ve bounced a cheque, you’ll also be dealing with bank fees for Non-Sufficient Funds.
For example, with Simplii Financial, when you have insufficient funds, this can result in multiple NSF charges to your account.
If you set up your pre-authorized payments on your Visa instead and there are insufficient funds, the transaction will be declined with no additional charges.
As of January 2024, the NSF charges are as follows: Overdraft APR: 19% Overlimit fee for Cash Back Visa: $29. Non-sufficient funds fee: $45.
Dealing With An Unorganized Partner
If you’re worried about how your partner or spouse handles their money or bill payment methods, it’s essential to discuss it.
Your money stress will only escalate if the problem isn’t dealt with.
I can’t tell you how important it will be to sort this out before you get married or commit further into the relationship.
When a couple is on two different financial journeys, someone will get burned, whether six months from now or years later.
Sometimes, people who pay their bills late continue to do so until a company has enough.
Using a budget and a bill payment schedule and having emergency savings will 100% help solve the problem of late bill payments.
If you can solve the financial concern using a method that works for both of you, that would be great.
It would help if you decided how important of a concern this will be for you before moving forward in the relationship.
Unorganized finances don’t stop at a bill payment.
You might also notice other things, such as spending too much money or no financial worry until it’s too late.
I hope I’ve given you a few tips today to help get you both on the same page when paying bills.
Missing a bill payment once or twice isn’t the end of the world, but clearing up the reasons will make a big difference to your bank account and sanity.
How We Handle A Missed Bill Payment
Below are comments from some of my amazing readers who wanted to share how they tackle a bill payment.
Well I have definitely thought I paid a bill, but really didn’t as well as accidentally incurred NSF fees when I was in Germany because of the length of time it took for checks to clear from their.
Each situation is different, but if it’s an NSF I suggest calling the bank.
If you don’t have it happen a lot sometimes they can reverse one or two.
As far as not forgetting to pay a bill.
I try to make sure I pay almost all of them at the beginning of the month so it is easier to remember.
However, another way to ensure that you don’t forget is you could use either Google Calendar or Outlook Calendar.
Ensure that it is tied to your phone to remind you at least once before it is due, and once it is done it could be marked off on the calendar as well.
I just started using google calendar to track stuff as it makes life so much easier than having 5 calendars between work and home.
Pay the bill when you realize it’s late along with late fees if any occur on the following bill.
If it is just late being paid a courtesy call could be made to the supplier and often they will deduct the late fees.
We have pre-authorized debit for most of our bills and know exactly when they come out of the bank.
Only reputable companies have pre-authorized payments like our house insurance, car insurance, and hydro bills.
Kevin, Frugal Dad of Daughter
The cell phone bill is paid once a year and our satellite is paid via internet banking the morning of payday.
We only get paid once a month so we make sure the funds are left in the bank for the bills.
As for NSF fees maybe see about overdraft protection as it is up to you to make sure the monies are in the bank to cover the amounts.
Colleen K.
I found it really hard to keep on schedule with anything, including bills, during the months before my husband passed away.
If I received a reminder, I would phone and apologize for the delay, explain the circumstances and arrange a way to catch up on my payments.
It finally occurred to me that the best way to take the burden off my shoulders was to automate my payments.
Once they came out of our account automatically, all I had to do was ensure there was enough in the account at the beginning of the month to cover the scheduled withdrawals.
I found that much easier and have continued with automated payments ever since.
Beth Ann
I had issues with my Dad’s bills when he was first hospitalized.
I made a lot of phone calls explaining the situation and the fact I did not have power of attorney to pay them but I promised to look after them as soon as I could.
So long as I kept them in the information loop they were willing to work with me.
Christine W.
Usually they roll over the missed payment with next month’s payment in your next invoice. You speak with customer service in billing.
If you keep missing payments they might cancel your service depending who it is with.
I used to work for a big insurance company in the US and if we saw a pattern of missed payments we might cancel it.
It dpends on the customer because if we found out someone was in the hospital or had extenuating circumstances we would forgive that and reinstate them.
We would take it on a case by case basis. Some companies hit you with a late fee. Depends on the company.
She needs to put him on auto payments.
Some companies do report you to a credit company if you keep offending them by not paying on time.
The best way is to contact your companies and say “hi I missed a payment, need to pay up and be current may I do that over the phone” and set up auto payments.
It’s best to nip any money problems in the bud before marriage.
Remember th #1 cause of divorce is money fights and money problems.
Solve this before you get married. Best wishes.
Lila D
Once you control your bill payment schedule, you can relax even more because you’ve got yourself covered. Is it worth it? You bet!
Discussion Question: Have you ever had a missed bill payment? What did you do to make it right?
Please leave me your comments below.
CBB Life Update
I’ve been super busy at work wrapping up paperwork this week, which is a big part of my role.
Documenting everything is part of my job, and it has to be exact with no errors, or it could cost someone a life.
This week, we had to make a trip to Hamilton, which took up most of my day off, which was fine.
It’s like a mini road trip for the family, and we shop afterward at second-hand shops before heading home.
We sold a few more items on Kijiji from our Spring cleaning blitz.
It feels good to have space back in the house.
Slowly, stuff is moving, but we’ll be offering it for free on the road next Saturday if it’s not gone.
It just makes it easier than answering online ads for free stuff.
Parenting life has been challenging for us once again.
We’re still working on his eating habits and sleeping.
It’s time he slept in bed, but now we must take the long road to get him there.
We still wouldn’t change a thing about having him sleep in the room with us from when we brought him home.
Now, we can’t get rid of him, lol.
If the weather stays nice, nothing else will happen apart from starting some outdoor spring cleaning again this coming week.
The other night’s surprise snowstorm made me feel better about waiting to take the snow tires off the vehicle.
Have a great week, everyone. It’s almost Easter!
Mr.CBB
CBB Published Posts
Top Post This Week: How Much Should My Grocery Budget Be?
- Anginetti Lemon Cookies
- Exclusive Easter Menu To Fit Your Budget
- How to lower household expenses without guilt and our March Budget Update
Fan Brag of the Week
Send your deal or brag of the week to canadianbudgetbinder@yahoo.ca, a photo, and a small write-up to enter into our yearly draw.
Enter as many times as you like. You get an extra ballot in the draw if your brag is featured.
Hey everyone, I’m back with a deal!
This is coupon shopping 101- I picked up 12 boxes of Kraft Dinner, 1 box of 12 portions of fish for the tenants, and a Chapman’s Sundae ice cream.
Total cost to me: $2.30- Colleen K.
Colleen used coupons from the manufacturer for this shop.
You can email Hapman’s once a year, and they will mail you a coupon.
See the link at the bottom of this blog post today.
CBB Finance Tip
I’ve had fans ask me why we have so much money in our savings account ($200,000+), and the answer is always for investments and renovations.
Many people have money, spend it, and are broke or struggling to pay the bills.
If you’ve saved money, pay your bills, invest, and do what you think is best with it.
Talk to someone who can help guide you if you’re unsure.
Spending money just because you have a healthy bank account might not get you into trouble initially, but eventually, it could lead you down the road to $0.
Top Finance Post
This week, Jen at Does That Make Sense says, “You don’t need a budget, just more money”.
I agree that y u need to budget for some fun money; otherwise, you can become very bored and miss out on things you might kick yourself for down the road.
I also believe that budgeting is more than just numbers.
It’s a snapshot of your past, present, and future.
We will always use a budget even if it does suck to ask for receipts all the time and document everything.
Like my quote says “Just because you have money doesn’t mean you have to spend it”.
Even if you make more money, that doesn’t mean you’ll still come out ahead.
Imagine if a business ran on that premise.
Now, imagine your bank account as a business. How would you want to run it?
The choice is yours.
Frugal Weekly Recipe
Food is a big part of any budget and a struggle for so many people, so I’ve created frugal recipes for my family and yours for many years.
I have a second Facebook page called The Free Recipe Depot, where I exclusively share recipes from Food Bloggers worldwide.
Check out the Free Recipe Index on CBB, compiled of frugal recipes 100% tested and accepted by family and friends!
This week, Mel over at A Virtual Vegan Mel has this fantastic recipe for Cinnamon Roll Cake In A Mug.
Now, if you’re like me and craving something sweet but don’t want to make an entire recipe, this cake in a mug is perfect.
Mrs. CBB makes low-carb-carb, high-fat cakes in a mug, too.
Google Search Terms
Always begin and end your day with a SMILE!- Mr.CBB
Every week I get tens of thousands of people visit Canadian Budget Binder because they did a search online and found my blog.
Most times funny, Sometimes serious.
- Is it wrong to take money from my husband, especially if he wastes it on his girlfriends?– I don’t know what type of relationship you are in, but taking money is wrong. The best thing to do is talk to your husband.
- How to make donuts like Tim Hortons- they have a website with their secret recipes.
- Meat Markdown Day Ontario– Uh huh, Is this such a thing?
- Money-Making Secret Societies– Yes, because I’d know all about them.
- Who gets rich on credit card debt?- I don’t know, but if you find out, fill me in.
That’s all the fun for this week, thanks for dropping by and we’ll see you all again next Saturday.
Mr.CBB
Missed payment…last time was about 4 years ago. It still stings (hurts my feelings really.) I had a $25/month commitment to Home Depot as part of their no interest for 1 year financing. I missed a month (still can’t tell you how or why, except that I forgot.) I got the call in the next couple of weeks and rectified it right away. However, one year later, when reviewing my credit report, there it was. It was the stupidest mistake, so small, yet there it was. A tiny blip.
In addition, I found that receiving my bills through Canada Post was inefficient. My kids would get the mail every day and it rarely ended up in my hands. I found piles of it everywhere! Plus, given the piles, I found it easy to ignore things.
Since then, I have one month of bill payments in the bank at the start of the month. I pretend it’s not there. As the reminders (on epost from Ontario Hydro, Bell through email, Koodo through email, and very occasionally regular mail notices, etc.) I pay them on the spot on my phone. I only automated my irregular payments such as insurance and municipal taxes as the dates are scattered.
Speaking of automating payments, my parents automated their Rogers account and for months they were charged all over the map! Many phone calls, many wrong billings, and they switched back to mailed billings. No more wrong billings, coincidently.
At this point in time, I actually overdo the reminders! Too much of a good thing, these reminders.
Essentially, we are all very busy and have many competing priorities. It’s so easy to forget a small amount.
I also changed my overdraft (eliminated the monthly fee) and left it as per use (at the suggestion of the bank teller). $5.00 per use when if I go into overdraft. Which hasn’t happened but doesn’t cost me anything. It’s kind of an insurance in case we crash. But it’s not part of my financial plan (in that I don’t use it.) In addition, cheques are very rarely used now.
Hi Anne,
Our overdraft is the same as yours $5.00 if we use the service which is reasonable considering they are saving our butts if we need the money. I would NEVER automate Rogers but since we’ve been with them for so long we know that when we update our services the charges will fluctuate for about 2 months until it’s steady as they have partial charges. We get our bill through email but one of the reasons why we are hesitant to automate. It’s more of a hassle if something goes wrong. At least if we do it we know it’s paid right. Yes, one missed payment even as small as $25 can sit on a credit report. Good thing you looked. Thanks for sharing your experiences. 🙂
Great to see you featured here, Chelsea! Love the MAD series, Mr. CBB. Thanks, again, for having me a few weeks back.
You’re welcome Cody~~ I have a blast meeting new bloggers and sharing them which is why I’ve been doing it for 4 years now. 🙂 I”m still looking to fill about 25 spots…send your mates over to introduce themselves. Have a great weekend.
At DebtWatchers.Net we strongly recommend that partners jointly open a bank account and that all household bills are paid from that account, by it being put in funds at the beginning of the month when you have both just received your pay cheque. Then if either of you screws up during the month the joint bills are still covered and the one that screws up has to sort out the mess they have created themselves. And not be bailed out by the other!!
I wholeheartedly agree with the importance of regular bill payment. One missed bill can create huge problems when it comes combined with the next bill. In fact, in the event of not having the requisite amount in your bank, I would advise taking an online loan in Canada. It is fast and hassle-free as the entire procedure takes place online. Repayment is also as easy as it can get.