Simplifying Your Banking and Personal Loans While Improving Your Finances
Online banking has grown tremendously in popularity in the past years, and that along with the rising of alternative ways to make accept accept payments online (like Dwolla and Paypal), means that nowadays more than ever before, people have to start keeping track of more than just a few financial accounts. of course, this makes it quite hard for everything to remain organized, and when you add the fact that many transactions dealing with a lot of money can take place on a daily basis, any misstep can literally cost thousands. So, if you move money constantly from one account to another or if you are missing some of the payments of your personal loans due to the hassle of tracking so many bank accounts, you should seriously consider starting organizing your banking.
Among the many benefits of simplifying your banking and financial situations, you’ll find that it becomes easier to avoid those late fees on your personal loans, which in turn allows you to benefit from rewards programs and such.
One of the first things you should consider doing is to consolidate your bank accounts. Look carefully at your currently existing accounts and determine how many of them are for savings and how many are checking accounts. You will be surprised to see that you might have more than just one of each. In fact far more than just one. Also inlcude any online payment services into your considerations and be sure to evaluate all the different fees that they charge and consider dumping any online service that you could replace.
The most common scenario that most people face when taking a look at their accounts is to find that they have multiple bank accounts but only a small amount of money in each one. This makes consolidating your accounts a great deal, even if you have to pay a little due to a few overdrafts in a checking account. In the long run, this measure will greatly help you control your balances and keep better track of them.
Always look at the terms that each bank account has to offer. If you search thoroughly you will find that savings account that offers the best interest rate or that debit card that offers users excellent rewards. If you have some luck, you might even find a savings account that sports the lowest fees and the best features. If on the way you realize that you have a bank account that you don’t need anymore, do not hesitate on closing it.
Once you are done revising your savings account, you will find that things start to get far more organized and that you are able to spend less time monitoring your finances. This of course, is a direct result of having fewer bank accounts to keep track of, but it is also the result of becoming more organized due to the lesser amount of things to do financially. Having fewer accounts and also few to none personal loans is the secret to get rid of unnecessary spending. The reason for this is that before, you might have gotten used to spend in unnecessary things by using different accounts, which tends to spread all these smaller spendings across your different accounts. By seeing all of these small spendings in just one or two accounts, you will become more aware of your unnecessary spendings and perhaps even realize that you didn’t need to acquire that personal loan after all.
Keeping fewer bank accounts also comes with one almost-unintended reward: Since all of your money will now be in just a few accounts, your balances in all of them will grow considerably. This will open the doors for you to take advantage of several different bank benefits and rewards offered.
In the same way that you analysed and purged all your existing savings account in order to keep just the few most important, you should also consider consolidating your credit cards and your personal loans if possible. Having way too many credit cards and personal loans puts you at a risk that is twofold: on one side, you risk missing a payment on your personal loans or your credit cards and on the other, you risk seriously deteriorating your credit score, which in the long run can completely block your ability to acquire more credit cards and personal loans. Because of this, it is far better to have all your debt consolidated in one big amount that you can choose to pay over a period of time that you feel comfortable with. In addition to this, seeing all your debt gathered up in just one place that you have full control of will definitely give you a motivation boost, making you feel better about the future.
After you consolidate your bank accounts, credit cards and personal loans, you should then set up automatic payments through your bank or other financial institution to pay all these bills. The great thing about automatic payments is that once you set it up, you simply forget about them. All the while, you will never be late again for payments and all your debt will start decreasing steadily over time. Of course, before setting up automatic payments, you should be sure that you will have the necessary funds to afford the different charges every month.
With all these measures, while you will not yet be debt-free, you will be on your way to becoming so, all with the least amount of effort on your part.