Should you level pay your utilities?
I’ve often wondered if there is anything wrong with budget or level billing for utilities. It seems like a good idea. You know how much you’re going to be billed every month and can budget that amount accordingly.
When I’ve looked into this option I’ve found that you typically need to have at least a 12 month history of payments. The company will divide by 12 and provide you with an average payment to make each month. You make up the difference once per year. If you over pay, you get the money back. If you under pay you owe the difference.
Dave Ramsey mentioned he didn’t think there was anything wrong with this approach on a recent radio show. If you have a variable income you may choose not to level pay because you might use the extra money in the months when your income is lower.
Have you had success with level pay? Or, can you share any issues you’ve encountered with level pay?
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