Debt Management Part 2
Debt management involves budgeting and planning to get your debt under control. The goal of a debt management plan is to use these strategies to reduce your current debt and move toward eliminating it completely
Use Your Bank When You Can
By automating your bill payment via your bank's system, you can save time. If you set up a payment schedule, they will mail you a check or pay your bills electronically. Payments can even be scheduled to be made bi-weekly if that is how you get paid.
Use the Debt’s Payment System When Needed
Automating the payment through them can sometimes lead to a reduction in interest. The disadvantage of doing it this way is that you may need to manually enter the information into your bookkeeping system if you use your bank's system. Find out if other information can be automatically imported to make the process easier.
Read Your Statements
An obvious drawback of automation is the risk of never looking at your statements. It is very important, however, that you read every statement every month. This way, you'll have a better understanding of the payments, making sure they're being processed, and that they are enough to meet your goals.
You might want to consider switching to email statements. Create a folder for all these emails and use the email's filtering system to put them in the folder to be checked at least monthly.
Automating your debt management system helps to organize everything so you can pay your bills on time and not feel broke all the time. Rather than having to make a first look into what your budget is, it takes less effort to do this. It's much easier when it's automatic.
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