Choose A Fixed Billing Program With Extreme Caution | I've Paid For This Twice Already... http://www.paidtwice.com/2008/06/25/choose-a-fixed-billing-program-with-extreme-caution/#comment-33652 Megan Thu, 26 Jun 2008 15:37:57 +0000 http://www.paidtwice.com/2008/06/25/choose-a-fixed-billing-program-with-extreme-caution/#comment-33652 In my previous home, my electric and gas companies both offered this, called "budget billing." Sure, it probably is great for budgeting to know that you have to pay the exact same amount every month for these bills. And the claim is that at the end of the year, you either pay the rest (or your budget billing is adjusted upwards to make up for anything missed) or you get money back. I didn't like the idea. First off, I was always trying to reduce my energy usage, which would save money. Additionally, as Mrs. Micah said, you'd have to be ok with an interest free loan or be ready to pony up the extra at the end of the year. I'd rather just know that I'm paying for what I used and not a penny more. I see where it would be helpful for people struggling to make ends meet or people who are just awful at budgeting. But I think that the main problem would be the mindset that "Oh, I don't need to worry about turning up the heat a few degrees this chilly November. My gas bill will still be the same." There isn't the same cause and effect to help force you into saving money. In my previous home, my electric and gas companies both offered this, called “budget billing.” Sure, it probably is great for budgeting to know that you have to pay the exact same amount every month for these bills. And the claim is that at the end of the year, you either pay the rest (or your budget billing is adjusted upwards to make up for anything missed) or you get money back.

I didn’t like the idea. First off, I was always trying to reduce my energy usage, which would save money. Additionally, as Mrs. Micah said, you’d have to be ok with an interest free loan or be ready to pony up the extra at the end of the year. I’d rather just know that I’m paying for what I used and not a penny more.

I see where it would be helpful for people struggling to make ends meet or people who are just awful at budgeting. But I think that the main problem would be the mindset that “Oh, I don’t need to worry about turning up the heat a few degrees this chilly November. My gas bill will still be the same.” There isn’t the same cause and effect to help force you into saving money.

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