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Lost pay on time discounts costing Aussies millions

Lost pay on time discounts costing Aussies millions

Most Energy plans come with the benefit of a pay on time discount. This means that if you pay your bill by the due date, you’ll get a discount off your bill. As these discounts are conditional, how can you make sure you don’t miss out on these savings? Some pay on time discounts can be as large as 30% or more, that’s a substantial amount added to your bill should you fail to pay on time.

In some states in Australia, late payment fees on energy bills are banned. Pay on time discounts, however, are loud and proud on most people’s bills around the country. For the simple act of paying your bill on time, you could save hundreds of dollars in one go. According to recent research, that’s easier said than done, with lost pay on time discounts costing Aussies millions.

As it currently stands, one-third of Aussies pay a bill late in a given year. That contributes to $286 million in late fees (mostly lost pay on time discounts) each year… just because people can’t pay the whole bill by the due date. 

It’s not easy to pay on time and in full

Most of these bills fluctuate from month to month so it can often be difficult to calculate exactly how much an incoming bill will be, making it harder to budget for in the long term. And with 89% of Australians feeling financial stress, the last thing anyone needs is a nasty surprise in the form of a higher electricity bill. But there’s a new way to pay your bills on time and reap the benefits!

At deferit, our mission is to help Aussies with their budgets which allow them to reap the pay on time benefits by never missing a bill deadline again.

deferit pays your bill for you and you pay it back in four instalments, making budgeting easier. 

But bill providers already offer extensions?

Absolutely – many bill providers do offer extensions, but you get them at a steep price. Ask yourself – would you like to pay a $200 “fine” for that payment extension? Because once you ask for that extension, your “discount” disappears and your bill can increase dramatically.

The real life savings: customers capturing pay on time discounts

Here’s a real life example from one of our customers in Victoria:

Lost pay on time discounts costing Aussies millions

The bill above has a pay on time discount of $214.94. With deferit, you can lock in that discount for as little as $5 a month, that’s a saving of $209.94. deferit is a subscription service and you only pay the $5 per month fee when you have an active bill in the system. There’s no interest, no late fees, no catch.

For a list of Energy plans in your state that offers pay on time discounts, have a look at this list compiled by Canstar Blue: https://www.canstarblue.com.au/electricity/pay-on-time-discounts/

What would you rather do with that saved cash? Let us know!

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