Have you ever forgotten to pay a bill on time, missed the due date or misplaced a bill? If you have, you are not alone. These are the top three reasons that Canadians give for why they have missed paying their bills, according to the TD Canada Trust Everyday Banking Poll.
Canadians may be overlooking the implications of missed bill payments. A surprising 43% of respondents think that there is no consequence if they miss a bill payment – that they just pay the overdue amount on their next bill.
“If you routinely miss your bill payments each month, it can impact your credit rating,” says Carrie Russell, Senior Vice President, TD Canada Trust. “Missing payments by more than 30 days could influence your likelihood to secure a future loan or a credit card because credit-granting companies look at past performance on bill payments as an indicator of future behaviour. It is essential to pay your bills on time. Why jeopardize your ability to access credit in the future?”
54% of Canadians report that they miss bill payments but, fortunately, of those who miss payments, 73% of Canadians only miss paying their bills one to three times per year.
“Paying interest and late charges on missed bills, even a few times a year, is like throwing money away,” says Russell. “One of the easiest ways to save money and protect your credit score, is to pay bills on time and online. Make sure you have the right everyday bank account – it should include features and services that help make it easy for you to pay your bills on time, keep your payments organized and avoid interest and late charges. If not, you should consider making a change.”