Do online payments help customers stay on top of bills?

12.09.08
By Nicholas Storie

We all know that technology is both a blessing and a curse. Some inventions that are aimed at making our lives easier may end up adding complications, while other innovations quickly become day-to-day necessities.

Now, new research from Billeo reveals that more people are turning to online bill pay as a way to keep on top of credit card debt and manage their finances.

According to the survey, the most common bills to pay over the internet include credit cards, utilities, telephone, cable, wireless and insurance.

The findings suggest that managing debt online can help people stay on top of what they owe by making it easier to monitor and tally transactions.

As evidence of this effect, the report found that over half of those who utilize online payment facilities are never charged with late fees, while 47 percent do not carry a balance on their credit cards.

"In uncertain times, [consumers] have the ability to exercise more control over how and when they pay bills, as well as how they track and evaluate expenses," commented Murali Subbarao of Billeo.

Keeping up with your credit card, mortgage and loan payments is one of the best tactics for improving your credit score - which can lead to improved rates on loans of all kinds.

In fact, 35 percent of your FICO score is derived from your payment history, which includes delinquent accounts, collections, bankruptcy and related transgressions.

There is other evidence that more people are going online to manage their finances. A separate study by AXA Equitable Life Insurance found that 48 percent of consumers look to financial websites for advice, news and information.

This medium beat out newspapers, finance professionals and magazines as the first port of call for people's questions and concerns.

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More people are reaping the benefits of managing their finances online