5 Tips to Automate Your Finances and Manage Your Debt
/Simple Debt Management Strategy
Published Date: January 19, 2012
Debt management is all about managing your finances efficiently, so you don’t fall in the trap of spending more than you have to. Money is such a thing that if you see it, you spend it. It may not be possible for some of us to stop spending unnecessarily if we have cash in hand. That’s why the best way to deal with it is to take care of your monthly recurring expenses automatically so you don’t need to worry about not paying that phone bill or occurring late charges on your rent or mortgage payment.
Here are 5 tips to automate your bills
1. Make a list of all recurring bills you pay every month. Some of these bills can be cable TV bill, Internet bill, cell phone bill, electricity bill, water bill, rent, mortgage, and so on.
2. Call each of your service providers and tell them that you would like to automate your bill payment so it comes out of your bank account automatically. You may need to complete a form and then mail or fax it back to the service provider to complete the process.
3. Automatic bill payment can be done using a credit card as well and in that case the whole process can be done over the phone – you may not need to complete and fax/mail back a physical form. However, use your credit card only if you pay your credit card in full each month. If you are trying to reduce your debt and you have had habits of not paying your credit card bills in full each month, stay away from paying bills using credit cards.
4. Make sure your bank does not have transaction limits or you are not exceeding your monthly allowed transactions, if you have a fee based bank account. I recommend no fee banking account such as President Choice No Fee Bank Account.
5. It is possible to pay all your bills online each month once you get your bills by accessing your bank’s online banking. However, this process will cost you time every month and there are chances that you will forget to pay bills once in a while.
