How to Begin Automated Debt Consolidation

There are so many ways for a person to get out of debt. One of the ways is debt consolidation, however forgetting to make the payments will hurt you worst than you originally started out. Starting an automated debt consolidation regiment can alleviate many troubles with paying things on time.

Some of the ways that a person can get into a regiment is through not handling their money at all. This can be done through a series of several different types of electronic transfers. These can be direct deposits, bill payments, and bank transfers.

Direct Deposits

Automated Debt Consolidation

Direct deposits are one way to set yourself on the right track to automated debt consolidation. A direct deposit is when your employer will send your paycheck directly to the bank rather than in a paycheck to you.

It is first important to make sure that your place of employment offers this feature to it’s employees. Then you are able to go to your bank to finalize the transaction. At the bank you are able to split your deposit into several accounts which can help to limit the access you have to the funds.

  • One account could be for savings only. This can be designed to only allow withdrawal if you go physically to a location offering no transferring or atm withdrawaling. This can limit the ability that you might have in spending the funds because if the inconvenience of getting access to the money.
  • One account for primary checking. This is the account that will have the bulk of a paycheck. It is where you would pay most of your bills from. This is an account that you can remove debit card access to, and only have your online payments come out of it. This can eliminate your ability to accidentally spend the money through impulsive purchases.
  • One account can be your spending account. This is the one account that you are able to spend money from. This would be where you put your grocery or gas money.

Having the ability to place your paycheck into the bank directly can help to deter you from spending your money. Having the deposit split between your accounts helps to ensure that you don’t over spend the funds that you are not meant to. This can be a hassle once one account runs out and the others don’t. However for this to work a person would need total commitment to not “borrow” money from any of the other accounts.

Bill Paying

One of the convenience that most companies are offering is the ability to make payments electronically. Automatic debt consolidation can be beneficial with this service. This can stop you from late fees as well as the urge to spend the money instead of paying the bill. There are two ways that most companies offer bill payments, one at a time or automatic. In many cases the automatic is the best way to go.

  • Automatic payments are designed to take the thought and the memory out of paying your bills. Once you set up the payment arrangements for your specific bills they will be paid through your account on a monthly fashion without you have to do anything. This can be helpful to someone that might forget to make payments on time, because they are automatically withdrawn.
  • Paying your bills is only is important to reduce your potential excessive spending. If you do not want to make your payments automatically through your bank or the company there is another option. As you are using you a single account for your bills you will be cutting over spending chances that can enable you to make the electronic payments one at a time each month. However, this will take discipline and a schedule. Making sure that you make payments on time will be crucial with this form of bill payment.

Bank Transfers

Through out your process to automated debt consolidation you will learn the ins and outs of bank transfers. You will be able to transfer money from one account to another if you have an emergency that would need more funds available. It is important that when you begin the bank transfer habit it is one that becomes difficult to stop. You need to have extreme discipline to only transfer money when it is an emergent situation.

Bookkeeping

One way to help keep track of your finances is through having an app for your computer or phone to help you keep track of the purchases you make. This is also useful when you are trying to balance several accounts at once. Keeping track of when you are scheduled to make payments, when you withdrawal money, and when money is deposited is critical. Create a specific time each week to sit down and complete your finances.

Following these suggestions can help to make the automated debt consolidation a simpler an easier task for one to accomplish.