Top tips on how to avoid late payment problems.

Late Payments. As many automatic bill payments are made by cheques, don't assume there are no delays in the process. Even if you set a date for the payment, it doesn't necessarily mean that it will be complied. Set the date a few days early so as to avoid any delays that can trigger late payment problems.

Lost Payments. Since automatic payment involves moving electronic money from point A to point B there are many things that can go wrong on the route. Sometimes, a sent order just doesn't get through to its destination point, due to some minor errors. You should always ask for confirmation upon payment. There are many financial institutions that send e-mail confirmations for successful payments.

Unexpected Withdrawals. Problems may occur due to lack of information. If you calculate your account balance, you might find that they have taken out more money than you expect. Since the payment is made automatically, it's harder to dispute, even if the bill was unjustly overcharged. Avoid setting automatic payments for bills that fluctuate monthly. Taking care of them personally makes it easier to have total control over your money.

Incorrect Withdrawals. There may be many errors occurring when payment is automatic. Computers can do a lot of damage, from double billing, to sending money elsewhere or just charging too much. You should always have a good eye over the transactions and permanently be in touch with your payments.

Difficult Cancellations. Automatic payments are well known for their difficulty in stopping. Many payments are still made even long after you've cancelled the services. Notify your bank as soon as possible and talk to the company that bills you to make them stop. Keep in mind that credit cards offer greater protection.

Bill Payment fees. There are some institutions that still charge you for the automatic payments they make on your behalf. Make sure you are well aware of any terms and conditions your bank offers for automatic bill pay and choose the lowest fees.