Psst! Here’s How to Never Miss a Bill Again

Kiss late fees goodbye by setting up automated payments

Cheryl Winokur Munk

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En español

Published April 21, 2025

woman scrolling on phone underneath paper with dollar signs and charts

Rob Dobi

Many older adults don't like to pay bills online, as evidenced by an October 2023 survey by digital billing company InvoiceCloud that found boomers have less confidence in using online payment systems, such as mobile apps or their bank's website, than their younger counterparts. But there are a number of reasons to consider paying your bills online — perhaps most notably, the ability to use auto-payment features.

Setting up automatic payments can help ensure that your bills get paid on time, preventing late fees and dings to your credit. It can also give you peace of mind knowing that payments by check won’t get lost in the mail — or worse, stolen from a mailbox and altered in a growing scam called check-washing.

Rick Miller, a financial planner and investment advisor at Miller Investment Management in Manassas, Virginia, worked with a client in her mid-70s whose Medicare supplement policy was canceled because she missed payments while on vacation. It cost her about $250 more per year in premiums with another provider, since the old one wouldn’t take her back after the payment snafu. She also had to pay at least $500 more out-of-pocket per year for prescriptions. “That’s not insignificant if you’re on a tight budget,” Miller says.

Another reason to jump on the auto-payment wagon is if you're experiencing cognitive decline.

Unfortunately, sometimes family members don’t recognize that a relative is developing memory problems — and by the time they do, the financial damage may already be done, in the form of late fees or missed payments recorded on credit reports. Enrolling in automatic payments can help prevent these issues, Miller says.

Which bills should you put on autopay?

Peter Hoglund, senior vice president and financial advisor in the Warren, New Jersey, office of Wealth Enhancement Group, recommends older adults set up automated payments for recurring monthly bills, such as for cell phone service, auto loans, mortgages, homeowner's insurance and utilities. He also suggests arranging auto payments for life insurance and long-term care insurance, since missed payments on these accounts could result in termination of the policies.

But still take the time to review your monthly statements to make sure there are no fraudulent charges, Hoglund recommends.

How to set up autopay

You can create automatic payments through your bank's website or app. To get started, you'll typically need a copy of your bill that shows your account number and the address where the payment is mailed.

You may also be able to initiate auto payments directly with specific service providers, such as your mobile phone carrier, insurance provider or electric company. But some financial professionals recommend relying on your bank for auto payments because many banks employ heightened online security measures, such as monitoring for fraudulent or duplicate charges.

If you arrange autopay with a service provider, watch out for fees. Some providers charge transaction fees — typically 1 percent to 3 percent — if you make payments by credit card. (Banks don’t generally charge fees for automated payments.)

Make sure your bank account has enough money

Whatever checking or savings account you use for making automatic bill payments, keep an eye on the balance so you know there’s enough money to cover the payment amounts.

Several years ago, Rosalyn Glenn, a financial planner with Prudential Advisors in West Columbia, South Carolina, encouraged her mother to set up automated payments for all of her bills. Glenn also made sure income automatically flowed into her mom’s checking account so there would be sufficient funds.

You don’t have to set everything on autopay

It doesn’t have to be all or nothing. You can try out autopay features with one or two bills and add more, if you want, as your comfort level grows.

Craig Lancaster, an analyst and content specialist at San Francisco-based Javelin Strategy & Research, recently encouraged his 85-year-old father to set up auto payments for his cable and cell phone bills. The cable company wasn't receiving his dad's mailed checks, resulting in late fees and rising frustration. But his father had no interest in doing automated payments for all of his bills, which Lancaster says was a “big step outside his comfort zone.”

To help ease his concerns, Lancaster made sure that his father receives text messages confirming when payments are posted (he still keeps track of them in a paper ledger). At some point, his father may be comfortable adding other bills, but it’s at least a start, Lancaster says.

Don’t let fear of technology trump convenience

While some older adults don’t trust online banking, Glenn says there’s no reason to fear automated bill payment. “It is a safe way for seniors to be able to take care of their financial responsibilities and have some peace of mind and convenience,” she says.

Still prefer paper statements? Most banks, credit card issuers, utility companies and other businesses will let you continue receiving paper copies of your monthly bills or account statements after signing up for auto payment. “At the end of the day, technology is our friend,” Glenn says.

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