Paying bills is an inevitable part of life, but doing so strategically can set you up for financial success.
While it might seem like enough to simply meet your deadlines, paying certain bills ahead of time can help ensure you crush your debt and get ahead financially.
By staying proactive, you avoid late fees, improve your credit score, and create breathing room in your budget. Here are 16 bills you should prioritize paying early to build strong financial habits.
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1. Mortgage
Your mortgage is likely your largest monthly expense, and paying this bill before the due date can be one of the smart homeowner money moves .
Early payments reduce the risk of forgetting about this bill. That helps you avoid owing fees and seeing your credit suffer. You might even save money in the long run and potentially pay off your home faster.
Making payments early also boosts the odds that you never face the risk of foreclosure.
Own a car? Here's 7 warning signs you're paying too much for car insurance. 2. Rent
If you rent, paying early can help you avoid late fees and reduce the risk of eviction. Some landlords may even offer discounts for early payments.
Building a habit of paying rent ahead of time can improve your standing with your landlord and reduce the stress of last-minute payments.
3. Court judgment debts
If you have court-ordered debts or judgments — such as fines or restitution — paying them should be a top priority.
Failure to pay these debts can lead to serious legal consequences, including wage garnishments or further legal action. Always pay such debts as soon as possible to avoid complications.
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4. Car payment
Paying your car loan early helps you stay ahead and ensures you never face repossession.
Additionally, paying extra on the loan principal can shorten the loan term and reduce total interest paid over time if the lender calculates interest on a daily basis.
5. Home security services
Your home’s security is crucial, and falling behind on payments with a home security service can leave you vulnerable. Stay ahead of this bill to ensure uninterrupted protection for your home and family.
Additionally, some companies offer a discount if you choose to pay your subscription fee yearly instead of monthly.
6. Utilities
From electricity to water, paying utility bills is essential to maintaining your home’s comfort.
Missing payments can lead to service interruptions, which are not only inconvenient but can also potentially come with costly reconnection fees. Paying utilities early ensures you will always have the services you need.
Get Out of Debt for Good: Try these 6 clever ways to crush your debt 7. Criminal justice debts
If you owe debts related to criminal justice fees — such as traffic tickets or court fines — prioritize these bills.
Ignoring such obligations can lead to additional legal troubles, including jail time. Ensure these bills are paid before the deadline to avoid serious penalties.
8. Insurance premiums
Whether it’s auto, home, or life insurance, paying premiums before they are due helps guarantee uninterrupted coverage.
Missed payments can result in policy cancellation, leaving you without essential protection. Paying early might even qualify you for loyalty discounts with some providers.
9. Student loans
Student loans can be a significant burden, but paying them ahead of time can help you chip away at the principal and reduce the overall interest paid.
Early payments also protect you from late fees and damage to your credit score.
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10. Personal loans
Similar to student loans, personal loans benefit from early repayment.
You can reduce interest, shorten your loan term, and build good credit when you consistently pay more than the minimum, or pay before the due date.
11. Credit card bills
Credit card interest rates are notoriously high, so paying off your balance before the due date can help you avoid costly interest charges.
Aim to pay more than the minimum and settle the full balance whenever possible to prevent debt from snowballing.
12. Subscriptions and gym memberships
Many people overlook recurring subscription fees, but failing to pay these obligations can result in disruptions to services.
Paying these bills ahead of time ensures you won’t lose access to valuable services. It can also help you avoid the stress of tracking multiple due dates.
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13. Health insurance premiums
Health insurance is essential for covering unexpected medical costs. Paying premiums early ensures that you remain covered and avoid any lapse in coverage, which is especially important if an emergency arises.
You don’t want to risk losing coverage when you need it most due to a missed or late payment.
14. Child care bills
Child care is a critical service, and paying these bills early ensures your child’s care remains uninterrupted.
Early payment also can ensure your child’s place is held at the day care center.
15. Taxes
Failing to pay taxes can lead to steep penalties and interest charges. If you can, make estimated tax payments or set aside funds in advance to avoid scrambling at tax time.
Paying early also helps reduce the risk of owing a large sum when you file a return.
16. Medical debts
Medical bills can pile up quickly, especially after a significant procedure or illness. Some providers offer interest-free payment plans, but falling behind can result in collections.
Stay on top of these bills to protect your credit, and negotiate a payment plan early if necessary.
Bottom line
Paying your bills ahead of time doesn’t just help you stay organized, but can also help you get out of debt, boost your income by avoiding late fees, and improve your credit.
If you want to get ahead financially , the key to success is proactive planning. Paying bills early could give you peace of mind and more control over your finances.
Money tips that can work for everyone
No matter what your bank account balance is, there's always an opportunity to optimize and improve your finances. Here's a quick checklist of things you can look at today.
Focus on paying off your debt. Debt can hold you back from making progress with your overall financial well-being. Aside from cutting expenses, there are tools that can help you pay off debt faster like balance transfer credit cards and debt counseling.
Earning extra income can give you breathing room. If finances are tight, earning some extra money to supplement your income can make a huge difference. A new job is one option to consider, but if you're not ready to make a big change or already retired, a part-time side job could be a better choice.
Cut your expenses. It sounds painful and so not fun, but it doesn't have to be. Take a look at your biggest expenses because that's where you'll probably find the biggest savings. For example, auto insurance rates have been soaring so shopping around for a new insurance company can be the fastest way to cut your bill. Also, look for ways to cut your grocery bill (despite rising inflation).
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