Do you have feelings of anxiety, stress or embarrassment when you think of opening your bills? If so, finding the courage to open your bills can help you overcome these feelings and face the fear of the unknown. If you feel like your drowning in debt, then the best way to get out is to start by understanding how much you owe.
Perhaps you’re someone who is too busy to open your bills, so you prefer just to pay them. Hopefully, after reading this post you’ll value the two-step process of reviewing and paying your bills.
I remember watching how Fred G. Sanford (Redd Foxx) on Sanford and Son (’70s TV show) handled his bills – he would either put them in a table drawer unopened or tell his son (Lamont) to put them back in the mailbox. That may have been funny on a sitcom, but in reality this practice can be very dangerous. You know what they say, “What you don’t know can hurt you!”
Here are the Top 5 Reasons to Open Your Bill:
- Identify any Erroneous Charges/Fees – Reviewing your account statements and bills give you the opportunity to verify everything is correct. I found a $594.00 charge for a sub sandwich on my credit card statement, when it should have been for $5.94. If I didn’t catch this error that would have been one expensive sandwich!
- Manage your Debt – Monitoring your accounts (e.g. verifying payments are applied correctly) makes it easier for you to manage your debt and track your progress in paying off debt.
- Improve your Credit Rating – Checking your bill due date and paying on time is one way to improve your credit score. According to myfico.com your payment history is the largest component used to determine your FICO® score.
- Identity Theft – Verifying your account statements help you to identify any fraudulent activity earlier.
- Check for any Account Changes – Service providers (e.g. cable) usually include account change notifications inside your bill.
When it comes to opening your bills, what you don’t know could cost you in more ways than one! Can you afford to pay for someone else’s mistake or shopping spree?
Just for Laughs 😆 – Watch the video below to see how Fred G. Sanford handled his bills.
FICO® is a registered trademark of Fair Isaac Corporation.
Staying on top of your business is a key step in changing the cycle. Eliminate the fear of the unknown by attacking it. Open your bills and develop a strategy to pay them off.
Well said, Mike. In order to break any cycle you must do things differently. Thanks for sharing your perspective! 🙂
Took me back a few years watching this clip!
This a classic symptom of a cause that goes back to changing one’s relationship with money. We ‘know what to do’ but it’s ‘doing what we know’ is the missing piece. That is what financial coaching is all about. Keep up the great work. You are helping rebuild the financial strength of the American household – one family at a time.
Hasnain, thanks for the positive feedback! I really appreciate you taking the time to share your thoughts on this topic.
You’re right for some people the missing piece is having the courage to do what we know. For others, I find that the root cause of the issue resides with how they were taught. It’s my hope that we will be able to break this cycle to promote financial literacy and good money management habits. I like what you are doing at frugalitynation.org and wish you continued success in your efforts. Hopefully, we can team together sometime in the future.
The clip was great! I must say this post really hit home for me. As a graduate student in Chicago, the only bills I opened were my cell phone and electric bills. Other than that, I knew I couldn’t pay anyone anything, so I would tear them up and keep it moving. Unfortunately, it was a habit that followed me post-graduate school as well. Sure, I had finished my degree, but I was looking for work and again found myself doing the ole “tear and toss.” Sorry, Medical Center, still can’t pay for that blood work, and yes, interest is scary Bank of America, but unless I can pay off my credit card with a short story, I can’t do anything for you!
Anyway, I’ve just recently started opening my bills. Trying to get organized. See what I owe and to whom, and finally trying to create a plan to take care of them. There were a few surprises — like the blood work bill was under $100 and the BOA debt was sent to another collector who was willing to settle* for a lesser amount — and I wished I had opened my bills sooner, been more informed and responsible. I’m learning, and blogs like this let me know I’m on the right track.
Thanks, Kembala!
Sheree
*Could you talk a little bit about how those settlement agreements work in regards to old debts that get passed around?
Sheree – Thanks for sharing your experience with us. I know it can be very stressful to receive bills when you don’t have the money to pay them. Prioritization is a good rule of thumb when you’re in this kind of situation, which you definitely executed. Talking with the companies and monitoring your accounts is also a good practice. I’m glad to hear that you stopped the “tear and toss” and are working towards eliminating the debt! You’re on the right track with getting organized and laying out a plan.
Thanks for the positive feedback on the blog and look for the settlement agreement post in the very near future.