How to Pay Bills Without a Checking Account

The ubiquitous checking account provides many conveniences and ease of bill payment. However, banking fees and monthly charges are expensive and unnecessary. It is possible to be current on all your bills by paying with a variety of instruments. Any inconvenience is offset by the savings of fees and charges.

Things You'll Need

• Pre-pay credit card
• Money orders
• Money-grams
• Traveler's checks
• Bank checks
• Cashier's checks
• Gift cards

Instructions

1. Receipt of income by cash allows a very straightforward means of bill payment. Cash can be used to pay bills or converted to other legal instruments that can be exchanged for tender. If you are paid by company check, the check can be taken to a payroll check cashing store and for a steep fee get cash. Sometimes companies have agreements with their banks to recognize employee checks even if the employee does not bank there.

2. If the individual has a large enough sum he may be able to turn his cash into a cashier's check, deposit it and write checks on a brokerage or mutual fund money market account. Strictly speaking these are drafts and not checks as they do not enter the banking system but operate in a similar manner. These drafts may take as long as 10 days for payment to clear. Drafts, cash and gift certificates may also be used to pay many utility bills at the local supermarket

3. Even without a banking account an individual can usually purchase a cash debit or credit card. This can be funded with a cashier's check, traveler's check, Western Union money-gram, and sometimes with a cash payment at the bank. Having the cash card allows payment of almost any other bill through online accounts. This is handy for items such as cell phone bills and other charge cards, such as those given by gasoline companies and national merchants. When a cash card cannot be employed, a money order will be acceptable.

4. Pay federal, state and local income tax with any of these methods. If necessary ask family members and friends to write checks on your behalf while you reimburse them with cash. The risk is that their check could fail due to non-sufficient funds and you are still liable for the debt. The best alternative then is to use a cashier's check, a bank check, a money order or a traveler's check. The fee for each of these is small.

5. It is difficult but hardly impossible to finance transactions without a checking account at a bank or local credit union. The supermarket and the use of credit and debit accounts funded by one's own deposits effectively replaces the checking account.

Tips & Warnings

• Try to find an easy way to cash your paycheck. Local merchants will sometimes cash them with a few days' delay.

• Keep track of the exact amount in your cash credit card. The card will not permit withdrawals in excess of the cash on hand.