Which would you do: RE - paying bills

jlw2505

The situation is you will have all the money needed to pay your bills for the next month and a little extra but not neccessarily on the day the bill is due (you get 3 paychecks in the month of Sept but at times the money comes in after the due date of the bill)  - which would you do (had this conversation with some friends last night):

A.  just pay the bill when its due knowing your banks overdraft account will cover the amount and you can pay that money back plus the small fee when you get paid

B. Pay what you can on time and then send a second payment in when you get the money.  You will have paid something on time so you won't have a late fee but you will pay extra since you are not paying off the total balance on things like the credit card bill

C. Just pay the total amount when you have all the money but know that the bill will paid late and depending on how late, you might have to pay a late fee.

 

One example that someone gave was that her mortgage is due on 9-1 but she doesn't get paid until 9-2.  Another similar example was with a credit card and she could pay part on time and but would still be about half short until she gets paid a week later when she could pay the rest off.  

It was an interesting conversation and everyone had a different way of looking at it and how they would handle it and the reasons why were just really interesting and I think really reflect people's experiences when it comes to money and paying things off on time and how they were raised.

august06mom

jlw2505:

The situation is you will have all the money needed to pay your bills for the next month and a little extra but not neccessarily on the day the bill is due (you get 3 paychecks in the month of Sept but at times the money comes in after the due date of the bill)  - which would you do (had this conversation with some friends last night):

A.  just pay the bill when its due knowing your banks overdraft account will cover the amount and you can pay that money back plus the small fee when you get paid

B. Pay what you can on time and then send a second payment in when you get the money.  You will have paid something on time so you won't have a late fee but you will pay extra since you are not paying off the total balance on things like the credit card bill

C. Just pay the total amount when you have all the money but know that the bill will paid late and depending on how late, you might have to pay a late fee.

 

One example that someone gave was that her mortgage is due on 9-1 but she doesn't get paid until 9-2.  Another similar example was with a credit card and she could pay part on time and but would still be about half short until she gets paid a week later when she could pay the rest off.  

It was an interesting conversation and everyone had a different way of looking at it and how they would handle it and the reasons why were just really interesting and I think really reflect people's experiences when it comes to money and paying things off on time and how they were raised.

If this was  one-time occurance, I would probably do B. However, for your friend with the reoccuring mortgage problem, this is why I pay my mortgage with my check that comes on the 15th, not the one that comes on the 1st. This way I am always 2 weeks early and not 1 day late. Then I use my other check to pay for the other monthly bills.  

CleoKitty

I would absolutely pay the credit card on time even if it meant incurring a small overdraft fee, but as far as the mortgage there's generally a 14-15 day grace period so she probably really has until the 15th to get it paid before it is actually considered late.

mattswife91805

I would pay the credit card to avoid the late fee. I know at least with our mortgage company they give you a 15 day grace period.

shopgirl78

Call and ask for an extentsion, generally they are pretty cool and will knock off the late fee. 

EMT

I agree with everyone else said. Pay the CC and then use the 15 day grace period for the mortgage.

Also, I am pretty sure you can call a credit card company and have then change the due date on your account so you don't get into a situation where something is due the day before you get paid every month.

ridesbuttons

cc: pay on time and incur overdraft fee (if this is common, then change account to cover overdraft)

mortgage: call bank and request a 3 day extension (if this is common, ask for date to be changed)

Scary, scary to think that this person is literally living paycheque to paycheque.

CleoKitty

ridesbuttons:

Scary, scary to think that this person is literally living paycheque to paycheque.

Um, I think this applies to the majority people out there (except, of course, in Nestland where everyone has at least 6 months of savings in their account and finances are always puppies and rainbows.) 

ashleyaugust7

ridesbuttons:

Scary, scary to think that this person is literally living paycheque to paycheque.

Welcome to reality.

ridesbuttons

Are that many people really living paycheque to paycheque?  Seriously?

The stress that must add to daily life must be unpleasant, so say the least.

belle204

Ridesbuttons, have you seen the U.S economy? Yes, most live check-to-check and it's not always a case of poor planning or mismanaging money.Take CJ's example. It's unfortunate but it's a reality.

ghm

ashleyaugust7:

ridesbuttons:

Scary, scary to think that this person is literally living paycheque to paycheque.

Welcome to reality.

Um exactly. it's scary that so many people are out of touch with what the majority of americans face. Unlike the people of nestland, people struggle.

CleoKitty

Yes, seriously. 

I'm amazed that you're so stunned. Seriously?

Try working a relatively low-paying job in a non-profit where you haven't had a raise in over 6 years yet insurance costs, gas, food and everything else continues to skyrocket. Add in a spouse who has taken a 40% paycut in that same time. 

I'm not complaining, many people have it much worse. We can eat, we're not about to lose our house and at least we freaking have health insurance but hell yeah we have to wait until we get paid before we can pay our bills each month. That's just reality for the majority of the working class I'd suspect.

 

jlw2505

ridesbuttons:

Scary, scary to think that this person is literally living paycheque to paycheque.

Just an FYI that this person is not living paycheck to paycheck on a normal base - she is a single mom (divorced 2 years) of 2 boys whose ex didn't pay his child support last month and she had some other unexpected bills come up thanks to some car trouble.  She typically has been fine but as a single mom and only 1 income - this month the timing was just off since she was short her child support payment.  I do agree with what someone else said though that living paycheck to paycheck is actual a pretty common thing - sad but so very true.

Jodi&Joe

"Scary, scary to think that this person is literally living paycheque to paycheque."

You know I like you and all but this is totally obnoxious!

penguingrrl

Ummm, many people live paycheck to paycheck. Over the past few years healthcare costs have skyrocketed (even those who are insured are often underinsured or are pay a higher percentage of their paycheck in premiums/deductibles/copays), food costs have risen quite a bit while salaries have remained completely stagnant for those who even still have a job. Even the best financial planning in the world couldn't be foolproof in the current economy.

ridesbuttons

Calling living paycheque to paycheque scary and stressful is obnoxious?

Look, I am not judging anyone, particularly not a single mom, for living paycheque to paycheque, I am calling it scary.

I grew up in a fiscally conservative home to say the least.  There was no money for extras.  The 70s wasn't exactly a rockin' financial time for most, I'm pretty sure my parents' mortgage had a double-digit interest rate. 

I grew up acutely aware of how stressful it can be in a family where money is tight, how scary.  That's all.

Jodi&Joe

ridesbuttons:

Calling living paycheque to paycheque scary and stressful is obnoxious?

Look, I am not judging anyone, particularly not a single mom, for living paycheque to paycheque, I am calling it scary.

I grew up in a fiscally conservative home to say the least.  There was no money for extras.  The 70s wasn't exactly a rockin' financial time for most, I'm pretty sure my parents' mortgage had a double-digit interest rate. 

I grew up acutely aware of how stressful it can be in a family where money is tight, how scary.  That's all.

But that's not what you meant.  You followed up with continued SHOCK that "that many people live paycheck to paycheck!"  YES, THAT many people do.  And yes, it can be scary.  And stressful, etc.  But I think you were passing judgement on them, not sympathizing.  Or at least that was the perception you were giving.

Angela814

The mortgage definitely has a grace period of at least 5 days.

I'd call and have the due date of the credit card bill changed to be a few days after the normal paycheck.

I think in most situations, I'd do B.

ridesbuttons

Although I didn't use the term, it is shocking to me that so many consider themselves living paycheque to paycheque.  It is not the impression I get from the posts on this board.

The social safety net in Canada is more comprehensive than in the States, and of course there is the health care thing.  So my point of view is a little different I imagine.

But thinking about families living paycheque to paycheque is a scary proposition.  Obviously I know it happens, but it is scary to think about.  I worry about money a lot.  We're self employed - Jodi you know the stress of that.  But to see that, what, 30% of this board is one or two paycheques away from a big problem is a surprise to me.

r9stedt

My clients purposefully switch the checks so then it looks like they paid them on time.......So then they get to wait for the money to be there AND the late fee is waived.   

Again, KC, read Framework for Understanding Poverty!