Close unnecessary bank accounts
Most individual financial needs can be satisfied by maintaining two
types of accounts: a checking account and a savings account. The more
accounts you have open, the more difficult it is to keep track of your
money and your spending. Simplifying your banking and reducing your
accounts to the two basic types will help you effectively monitor your
spending and stick to your budget. If you are constantly transferring
money back and forth between several different accounts, you are more
likely to lose control over your expenses and make costly mistakes. The
best debt management adviceis often the simplest. Keeping your accounts
simple will help you meet your financial goals more quickly and with
considerably less stress along the way.
Many creditors offer discounts and special incentives for customers who choose to enroll in automatic payments. Occasionally, you can even obtain a lower interest rate by agreeing to have your payments auto-deducted each month. Be careful, though, because automatic payments will hurt your budget if you have unforeseen expenses or truly cannot handle having payments removed on a set schedule. Follow your credit counselor’s debt management advice and only sign up for auto pay if it makes sense for your individual situation. If your finances are tight, consider enrolling in automatic payments for larger bills like your mortgage payment. Auto pay will help you pay on time every time and avoid late penalties and negative items on your credit report.
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