Pat Lawlor and his wife were first-time homebuyers, eager and ready to start the process. Things took a turn for the worse when Pat received an email from his “escrow officer” and sent over their down payment. Catch the full interview here. Buyer beware!
Money tip: 5 bills you should never put on autopay
It’s not always possible to buy something you need (or want) outright. If the price is high, you can pay in installments, which may or may not involve a down payment. This payment plan is typical for large purchases like houses and cars.
For more minor things, you can choose to go the buy now, pay later route. This typically involves splitting the cost of a product into equal amounts and submitting payments on a schedule. It sounds simple, but risks are involved, such as unexpected fees. Tap or click here to check out our report on BNPL programs.
Autopay is a great way to avoid late fees and interest on some things (primarily monthly payments that never change), but it’s not a good idea for every recurring charge. We put together a list of bills you should not put on autopay.
1. Annual subscriptions
You’ll usually see that an annual subscription will cost less over a year than a monthly one. The problem is that they’re easy to forget and could hit your bank account hard when you least expect it. If you don’t have enough in the bank to pay it, you’ll be hit with an overdraft fee on top of the account’s cost.
Annual subscriptions are available for magazines/newspapers, auto insurance, retail memberships, sample boxes and more. Go ahead and subscribe for a year but do not use autopay.
RELATED: Buy now, pay later: Amazon adds the option to pay in installments
2. Streaming services (monthly)
Streaming services help cut the cord but carry the same payment plans as cable. It’s easy to forget all your services, especially if different family members have their preferences. Even living alone, you may not use all the services you’re paying for.
Look into your subscriptions and drop the ones you’re not using: Netflix, HBO Max, Spotify, Amazon Prime Video, Hulu, Disney+, Paramount+, Peacock and whatever else you’ve signed up for. For the remainder, avoid autopay.
3. Cellphone bills
Cellphone bills can fluctuate when you’re not on an unlimited plan. Depending on your data usage, the amount you owe can change from one month to the next. You could have one hectic month that leads to a higher bill than expected, which leads to a bigger hit on your bank account.
Use this free online calculator to see how much house you can afford
If you are in a temporary situation, renting can be optimal when you need a place to live. But anyone dealing with landlords and the less positive aspects of renting might wonder when is the right time to buy a home.
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