There are many financial habits that make you fall into debt. Some are greatly mistaken for smart financial tips, while other ones are just bad but it seems like you don’t have many alternatives.
1. Putting bills on automatic
You can put your savings on autopilot, but certainly not your bills. With automatic bill pay you won’t ever forget to pay, however, you can forget to keep enough money in your account and wake up on penalties or overdraft fees for returned payments.
Paying your bills automatically is eventually taking you out of the process, which means that you’re not noticing charges that don’t belong. Even worse, it desensitizes you more to spending.
When an unexpected amount of money automatically comes out of an account, it could be the tipping point, especially for someone living on the edge.
The best thing to do set up alarms reminding you to pay your bills, instead of automatic payments with unpleasant consequences.