How to Prevent Debt Using Financial Automation

by Natalie Cole

If there’s anything we can learn from this economy, it’s that getting into debt isn’t necessary to live the life we need. But if you’re used to living a life of credit and debt, how can you ensure you won’t get stuck in it again?

By automating your finances, you can prevent yourself from getting into debt. Because once that debt begins to spiral out of control, it can be much harder to hold onto your finances.

When is that Bill Due?

Let’s face it — we all lead hectic lives. We’re trying to hold together a professional working lifestyle along with active family and social lives, so it’s no wonder that our finances can often be the first thing to slip.

It’s easy to forget when your bill is due. You know when it’s due, but it slips to the back of your mind and, before you know it, you missed the date and you are left with hefty charges and have lost any promotional interest rate with your credit card or loan provider.

If you’re not keeping a tight check on your finances, you may have to seek debt advice in the future.

Automatic payments means that you no longer have to worry about remember to pay your credit card debt, unsecured loan repayments or store card bills. As long as the money is in your linked account, the bill will be paid.

Tip: Many credit providers only let you set up a direct debit for the minimum payment. If you are looking to clear your debt much quicker then you might want to set up a standing order as well.

Dealing with Unexpected Financial Expenses

Automatic payments let you put money aside for a those unexpected expenses, using a once-in-a-while fund.

Car costs, essential household maintenance or a financially expensive month will put someone struggling financially on the brink of bankruptcy.

Your debt problems can be resolved by effective budgeting and automating as much as possible. You will never realize how much you spend on gasoline or food shopping until you see it in full.

By taking full control of your own finances, you’ll understand the true cost of everyday expenses on your income.

Use a Debit Card for Your Purchases

Many personal finance tips say you should only use cash, but dare to be different! As long as you have control over you budget and won’t be tempted to spend any more than you can afford, put everything you spend on your debit card.

With a debit card, you’ll have a full log of your spending through online banking and don’t have to worry about keeping receipts.

You may also find that purchasing everything with your debit card makes it easier to say no to those little treats (morning latte, vending machine nibbles, glossy magazines) because smaller outlets do not take card payments.

Remember, you are in control of your finances. If you are in debt, seek debt help. Don’t put off until tomorrow what you can do today. By automating your finances, you can keep yourself out of debt and get a better grip on your money.

About the author: One Advice are one of the longest established debt solutions practices in the UK. They offer a full range of financial solutions all under one roof, so they can ethically advise their clients as to which financial management solution is their best option.

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