This Simple Move Can Save You Big Money On Utilities This Winter

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I made this move a few years ago and have no regrets.

Key Point

• Utility bills are often higher in the winter because people spend more on natural gas to heat their homes.
• The more time you spend indoors, the higher your electricity bill will be.
• Many utility companies offer their customers multiple payment methods.

To be honest, winter is not my favorite season. For someone like me who catches colds easily, living in a place where it snows for about five months a year is by no means easy. As I’ve gotten older, I’ve started enjoying more and more outdoor winter activities, but I still spend most of the winter indoors with a good book and plenty of blankets.

But it creates another problem. Maintaining body heat can result in very high utility bills. At least it used to be. But then I learned a trick to keep bills from being forced into my bank account in the middle of the holiday season.

Done in just a few minutes

The biggest problem with utility bills is that they fluctuate based on usage. So one month your expenses may be higher or lower than the next, but you don’t really know until you get your bill.

You can keep costs down by lowering the thermostat, turning off the lights, or doing other things to reduce costs. But you still pay for heating your home every day, so your bill can be higher in the winter.

If you want predictable payments, switching to budget billing is a smart move. This is where utility companies estimate annual usage based on usage history. If you haven’t lived in the house for a year, it will start based on data from the previous owner’s usage history. Monthly payments are then made on a regular basis as the cost is split evenly over 12 months.

To be clear, this does not reduce the amount you owe. But it’s much easier to plan on a budget.

some caveats

Most utility companies that offer budget billing recalculate monthly bills at least once a year to ensure they reflect actual usage. If you use more electricity or gas than you expected, you’ll end up paying all at once at the end of the year, which can significantly increase your monthly bill. However, your bill may also drop over time if your usage is lower than expected.

Additionally, some companies charge administrative fees to set up budget billing to their customers. If you’re considering this, it’s a good idea to check if there are any fees associated with the budget billing program before signing up.

Finally, if your monthly bill doesn’t reflect the previous month’s usage, it’s likely that you’ll lose track of your actual usage. This may lead to higher heating or use more electricity, and you may not realize the consequences of your actions until the company reassesss next year’s budget bill. there is.

how to get started

If your utility company offers budget billing, just call and ask or look at their website if you want to pay your bill online. It may take up to a month for the changes to take effect. So if you’re trying to avoid high bills in the winter, it’s a good idea to change now.

Remember, however, that this strategy will not reduce your overall debt. Just pay to change. If you want to borrow less, you should also take steps to reduce your usage throughout the year.