Should you pay your bills early?  How far should you go into credit with your bills?   Whenever I work with budgeters, their advice seems to always be: "break down your repayments into small amounts and pay them weekly to places you have regular bills" When I speak to people who have, at any time in their lives sought budgeting advice, this is how they operate.  Often to the point where they are hundreds, even thousands of dollars in credit with large power companies, phone companies, rates, or insurance payments.   Does this mean you are lending money, interest free, to these large companies? Do they deserve your loan? Can you afford to give them an interest free loan? Here's an idea, have a separate bills account for that small amount each week, or fortnight. The money remains in YOUR bank account until it is due to be paid.   Make the bills account so your eftpos card can't be used on it, money will still be there when your bill is due. ...