You have scheduled bills and expenses that need to be paid, usually at month’s end.
This almost goes hand in hand with setting up your budget.
It is very important that you know on which date (usually the end of the month or the date you and your creditor agreed upon) you need to make the payments.
By having your budget, you will know whether you will have the specific amount of cash available that is needed for the repayment.
When it comes to making repayments on credit cards, loans etc… it is of great importance that you try and pay at least the minimum amount required.
This will of course help you to stay out of debt.
If you are setting up your budget and see that you are not going to be able to make the necessary repayments, it’s time for you to look at your budget again and however difficult it might be, you need to cut back on some of your expenses (those that are not classified as priorities) like the entertainment amount you set aside for yourself.
To make sure that payment does happen on a scheduled time, some people prefer to make use of debit orders.
So what exactly is a debit order?
A debit order can be seen as an agreement between you and a company, where you authorise / give them permission to take money (the amount for the repayment) out of your bank account.
Debit orders can be a fixed or variable amount.
Having a debit order can make repayments much easier, since you know for a fact that the payment will be done. All you need to do is make sure that the necessary funds are in your account for the transaction to be completed.
Making monthly repayments on time is very important because the last thing you need is to be placed in a situation where you end up with debt or even a bad credit record due to the fact that you missed a few monthly payments.
Life will be much easier (when it comes to repayments) if you make use of a payment schedule – an easy manageable timetable where you can keep track of everything.