Would it be more interesting to pay your bills every month or combine them for payment once a year? Management in a home is not as simple as it may seem. You have to find the best strategy to ensure good management of your accounts. For this and depending on the case, you can choose between a monthly payment and an annual payment of invoices. Discover the advantages and disadvantages of monthly or annualizing the payment of your bills!
Many more advantages to pay your bills monthly
Electricity, water, rent, tuition, Internet subscription… these are all expenses to be assumed within the home today. If in principle, as for the deduction at source, the monthly payment of its invoices makes it possible to discharge them more easily, it is nevertheless necessary to understand that everything depends on the type of expense and your personal situation. By observing around you, you will see that most often and the vast majority of people opt for paying their bills every month. But what are the advantages of paying your bills every month?
An undeniable advantage of this chosen method of payment is revealed above all in the facilitation of account management. Indeed, it is easier to manage your monthly budget, especially since you are an employee receiving your salary each month. The monthly payment of invoices allows you to pay according to your possibilities a large part of your annual debts. This is how you can also control the various withdrawals from your bank account in an easier way. You can also proceed to the establishment of your monthly budget, precisely, so as not to exceed it.
Annualize your invoices: easier with good management
If you can have control over the amount of direct debits that will be withdrawn from you every month, this is not the case with the option of annualizing invoices. Thus, you won’t have any surprises, as you will pay a small part of your annual bill, a bill that will be divided into 12 monthly installments. However, by opting for an annual payment, especially for the repayment of your debts, you have the possibility of building up more significant savings.
Instead of then requesting the direct debit of your reimbursements each month, you can save them and only pay once the agreed date arrives each year. With savings tax laws, you have the opportunity to make your money grow even more. Nevertheless, it is just as important to know how to choose the fiscalized booklet which will offer more advantages in relation to your situation.
But if there is one drawback with the annualization of the payment of invoices, it is the surprise invoices, the amounts of which greatly exceed your estimates. Either way, it’s another way to get you to save more and earn more interest.
Monthly payments: the organizations concerned
If the loan charges, whether real estate loans or consumer loans, must be withdrawn monthly from your bank account, there are organizations that offer both monthly payment and annual payment of invoices. This is particularly the case with insurance companies, energy suppliers such as EDF or even water and Internet suppliers. Consumers can choose between different types of plans with subscriptions to be paid monthly or once a year. In any case, it would be best to refer to your income and your personal situation to choose the frequency of payment of your bills.