At the Environmental Finance Center at UNC-Chapel Hill, we are always communicating that how you pay for it matters, but could how often you pay for it matter as well? We delve into the impacts of billing frequency on the utility.
It may seem counter-intuitive to think that receiving bills more regularly would be positive, but there are many reasons why utilities have trended towards monthly billing and away from bi-monthly, quarterly, semi-annually, or even annual billing. From FY2007 to FY2019, there has been an 8% increase in utilities that bill monthly in North Carolina, all of which switched from less frequent billing. Here are some reasons that water utilities are trending towards more frequent billing patterns:
Taking out the trash is one of those mundane aspects of life most people would rather not think about. But the bill for garbage collection still has to be paid. When signing up for service, you typically get the option of paying your garbage bill either weekly or monthly. So which is the better option for household budgets and cash flow management?
This article breaks down the key differences, pros and cons of weekly vs monthly garbage bill payment schedules. We’ll examine the factors that impact costs like frequency of service, bin size, weight-based charges, and extra fees You’ll get tips on reducing your garbage bill amount And see average price ranges to expect.
Let’s dive in to determine whether weekly or monthly garbage billing fits best with how you manage expenses and pay all those pesky bills that keep coming.
How Garbage Collection Rates Are Calculated
Before deciding on payment frequency, it’s helpful to understand how your garbage bill amount is determined. Key factors include:
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Frequency of Service – How often pickup occurs, like weekly or biweekly. More frequent service means higher costs.
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Number and Size of Bins – Rates are based on the quantity and capacity of your trash and recycling containers.
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Weight – Some haulers charge per pound collected, common for commercial clients. More weight equals a bigger bill.
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Extra Services – Fees for bulky item pickup, yard waste removal, etc. are added on.
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Fuel Surcharges – Trash trucks use fuel driving routes. Some companies pass on fuel cost spikes.
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Local Taxes – Municipal taxes on waste collection account for 10-20% of your total bill in certain areas.
Where you live also impacts rates set by local service providers. Now let’s look at the implications of weekly vs monthly payment.
Paying Weekly
- With weekly billing, you receive a bill after each garbage pickup service. If your trash is collected every Wednesday for example, you’d get 52 bills per year.
Pros of Weekly Billing:
- Smaller payments have less impact on monthly budgets.
- Pay only for what you actually used based on volume of trash.
- Easier to budget week-to-week rather than project a month ahead.
- Avoid getting slammed with a huge monthly bill if you forget to pay.
- Provides more control over what you spend on garbage collection.
Cons of Weekly Billing:
- More time required to manage and pay bills arriving weekly.
- Possible convenience fees for paying bills more frequently.
- Must diligently track multiple due dates to prevent late fees.
- Need to stay highly organized with your finances week-to-week.
Overall, weekly billing gives you tighter control over garbage costs based on your actual usage. It benefits lighter producers of trash.
Paying Monthly
- With monthly billing, you receive one bill after service each month. So if pickup is weekly, the monthly bill covers about 4-5 weeks.
Pros of Monthly Billing:
- Convenient to have just one bill to monitor and pay.
- Allows for easy autopay setup.
- Similar bill amount every month makes it easy to budget.
- Less time spent on managing billing and payments.
Cons of Monthly Billing:
- Large single bill can significantly impact monthly budgets.
- Paying for weeks you may not have generated much trash.
- Must estimate costs accurately to budget properly.
- Risk high late fees and service disruption if miss paying for the month.
Overall, monthly billing simplifies bill payment but provides less control over charges based on usage. It works best for steady trash output.
Key Factors in Choosing Payment Frequency
Consider these important points when deciding between weekly or monthly garbage bill payment:
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Cash Flow – Weekly allows you to scale payments to usage while monthly is more predictable.
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Bill Management – Weekly takes more diligence while monthly is simpler.
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Household Size – Larger families favor weekly to match fluctuating trash.
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Travel Habits – Monthly works well if you’re away regularly since you pay regardless of usage.
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Budget Strategy – Weekly assists short-term planning while monthly helps annual budgeting.
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Past Due Risk – Weekly reduces lump sum amounts if you miss paying monthly.
Evaluate your unique financial circumstances to choose the right fit. Many haulers let you change the billing cycle if your needs change.
Average Monthly Garbage Bill Costs
To properly budget, it’s useful to know average garbage collection costs. Here are typical monthly bills for a single-family household:
- National Average: $55
- Lowest 10 States: $40 (WY, IA) to $49 (ID, NE)
- Highest 10 States: $73 (VT) to $93 (HI)
Bills range from $20-$40 for smaller households up to $60-$100 for larger families. Apartments and condos are cheaper ($30-$60) since costs are split across multiple units.
You can reduce monthly bills by decreasing waste, recycling properly, researching all provider options to find the best rate, and looking for any available discounts.
Weekly vs Monthly: Which Should You Choose?
Go with Weekly Billing If You:
- Have fluctuating trash amounts week to week
- Prefer close control over what you pay
- Can diligently track due dates for smaller bills
Go with Monthly Billing If You:
- Produce consistent trash volumes every month
- Want bill payment simplicity
- Prefer single payment already fit into your budget
Carefully consider your situation to make the right choice. Comparing all options allows you to maximize savings on this necessary utility.
Whether you go weekly or monthly, closely monitoring your garbage bill spending enables you to keep more money in your pocket. That gives you more financial freedom to use on things way more fun than taking out the trash!
Monthly billing allows customers to better manage their household budget and monitor their water usage.
Monthly billing helps customers establish a payment rhythm. Customers can estimate their monthly payment and build that amount into their budget versus having a larger expense come up a few times throughout the year. While a monthly bill of $50, a quarterly bill of $150, or a semiannual bill of $300 will all generate the same revenues for a utility, $50 is more affordable for a customer to pay at a given time. Many customers operate on a month-by-month basis when it comes to expenses, as most bills (think: cell phone, electricity, credit card, rent, etc.) come once a month, every month. As such, customers may not have the foresight to save a little each month for a larger quarterly or semiannual expense.
Monthly billing allows for increased communication between the utility and customer.
For most communities, the only communication between a utility and its customers comes in the form of the utility bill. As such, more frequent billing cycles allow for more regular communication and fewer surprises. This increased monitoring and reporting equips utilities and customers with the information to notice leaks sooner. Early leak detection benefits customers financially, so they are not paying for water they aren’t using and can more quickly discover leaks that could result in expensive damage to their home. Usage from these kinds of leaks can add up quickly and are a significant addition to a bill, especially if this accumulation occurs over several months.
From the utility perspective, there are also benefits to this increased communication. For example, if a utility is trying to conserve water or is concerned about supply and a customer has a leak, it is beneficial for the utility to help the customer recognize that issue earlier rather than later. The customer has a financial incentive to address the issue quickly, allowing the utility to quickly recapture the lost supply from the leak. Similarly, monthly billing allows utilities to recognize meter issues, such as broken or slow meters. This provides the utility the opportunity to address this lost revenue more quickly and regain the revenue stream.
VIDEO: Options for help with paying utility bills
FAQ
Should I pay bills weekly or monthly?
Changes may need to be made to this plan as you learn more about your income and expenses. If you get paid every two weeks, paying your bills every two months can help you stick to your budget, but you’ll have to put in some extra work to keep track of your payments.
Is it better to pay bills monthly?
Paying once a month or in installments can help you manage your budget, other debts, and cash flow better because the smaller expense is spread out evenly over the billing period.
How often should you pay your bills?
As soon as you receive your paycheck, pay the bills that are due before your next paycheck. If you don’t have enough cash on hand to pay all of your bills before your next paycheck, talk to your creditors about moving up a few of your due dates.
How much does a monthly garbage bill cost?
According to Moving. com, a monthly garbage bill can be anywhere from $20 to $80, mostly based on where you live. The price depends on where you live, how much competition there is among service providers, local taxes, dumping fees, gas prices, and the size of your trash can.
Should you pay for weekly curbside garbage pickup?
Paying for weekly curbside garbage pickup can really add up. When you’re trying to fix your finances, get out of debt, or save for a big goal, you should think about every dollar you spend. Even your trash service!.
How much does waste management charge to pick up a garbage can?
For example, Pittsford’s Bill Goldman pays Waste Management more every three months to pick up his trash can from his garage instead of at the curb every week. He pays around $125 per quarter for pickup, all fees included. I’ve always had doubts about myself, but I think it’s worth it, he said. He has worked for Waste Management for many years.
How can I save money on my garbage bill?
There are several ways to save money on your garbage bill. First, take the time to learn about your choices for how often your container will be picked up and what size it will be. Then, familiarize yourself with the cost for special services, such as bulk pickup. Next, take stock of what you need.
Should a trash bill be a mandatory expense?
It’s easy to think of a bill like your trash bill as an obligation when you have to pay it every month, but it doesn’t have to cost as much as you think. We really thought about things when we went from not having a trash bill at all to having to pay for trash pickup.
