Monitoring Your Money To Stay Out Of Debt
When money is running low and times are a little harder than usual, it’s easy to try to turn a blind eye to your financial situation. Most of us are guilty of sliding unopened bank statements into drawers. Out of sight, out of mind, right? Well, not in this case. You should always be aware of your monetary situation, especially during times of struggle. You can’t sweep payments and debts under the carpet. Burying your head in the sand can ultimately result in further and more serious debt. So, it’s time to face your finances.
Changes in the Market
The market is constantly changing, and this is significant, even for those whose only method of banking is a checking account. There is a common misconception that all checking accounts are essentially the same. But this couldn’t be further from the truth. Most people will still be with the same provider that they opened their first account with.
But you should keep an eye on changes in the market to ensure that the account you currently have is offering you the most for your money and the best offers possible. Certain banks are starting to establish rewards accounts, which give you something back for your loyalty and regular use of their services. So maybe it’s time for you to make the switch. Research the best checking accounts available to you to weigh up the pros and cons of each.
See which offer you the best rates and deals. Once you have settled on one, don’t allow the bank to guarantee your ongoing loyalty. Remember to always be on the lookout for competitive offers. As long as you always know your current financial situation, you will be able to root out the best account for you.
Banks and credit providers capitalize on your mistakes when it comes to controlling your cash flow. You should always know your credit limits, overdraft limits and the dates that your bills and direct debits come out of your account, as you will be bombarded with multiple charges every time payments bounce and you exceed your limits. This is entirely avoidable though. As long as you know when your payments are due, you can ensure that the money is available in your account on time.
Sometimes you will be accidentally charged for products or services that you haven’t used. If you ignore your bank statements, it’s easy to miss these. Especially if they are small amounts. But even the smallest of payments mount up over time. You should always know exactly what you spend your money on so that you can easily identify any overpayments or incorrect payments being taken from your account as soon as they occur.
You should also be aware of the agreed interest rates placed on your cards. Sometimes you will sign up to a card with a certain period of interest-free spending and find that you start repaying interest before it is due. Note down all agreements and ensure that lenders stick to their part of the deal.
Staying out of debt is what we all want and utilizing these tips to monitor your money will surely help