Gas and electric utility companies often offer customers a budget plan.They total your bill for the past 12 months, and come up with an average monthly payment. You pay this amount for the next 12 months. If at the end of that time, you have utilized less that what you have paid out, you will have a credit going forward into the next month.
If your finances are pretty stable a budget plan can be a wonderful choic e. Budget plans are beneficial for those who heating or electric bills can accelerate during summer months using air conditioning or a very cold winter. Paying the same amount each month, helps customers to budget said amount and avoid disconnect notices when bills are higher. There is however a down side to a budget plan.
Should you be late just one month, the computer will automatically remove you from the plan. You will then be required to pay your total balance, before you can once again be put on a monthly budget amount. If at the end of the year, you have used more electricity or gas heat than your budget amount, the entire balance is due immediately.
I know people whose budget amount balances itself out, while others have a credit. Unfortunately, some individuals end up owing several hundred dollars or more. One woman owed a thousand dollars. There is a way to set your own personal budget plan in motion so that you always come out ahead.
When my oldest son still lived at home, he was responsible for the electric bill. When he first began paying the bill was about $140.00 a month. During late spring and early fall, the bill was as low as $75.00. During late spring and summer the bill was as high as $180.00.
During the second year of paying the bill, my son gave me $140.00 every month. This way we often had a credit balance, and when the air conditioning raised the bill, we broke even. Using our own budget plan helped my son to pay a similar amount each month.
This was easier for him than going from $75.00 to $180.00.The best part is there was no concern of owing too much at the end of the year or being removed from the utility company plan. Another benefit is that if you have a month where you get behind, the utility company will make arrangements for you to catch up. They will not do this if you are on their budget plan.