Thursday, September 03, 2009
Stockpile of Unopened Bills Signals Trouble
Unopened bills or bank statements piling up could be a warning sign that trouble lies ahead.
"Few of us want to pore over the details of our finances 24/7. But if you find yourself constantly avoiding money details, you could be setting yourself up for financial ruin," writes Liz Pulliam Weston in a MSN Money article published recently.
Along with stockpiling your bills, Weston names not knowing how much debt you have, ignoring attempts made by your financial institution or credit card companies to contact you, and skipping payments as other red flags.
"A single lapse of attention can lead to hundreds of dollars in bounced-transaction fees. Late or skipped bill payments can trash your credit scores, which can cause your interest rates to soar, jack up your insurance premiums and make it harder to get an apartment or a job. Skipping a car payment can lead to repossession, while missing three or more mortgage payments can start the expensive process of foreclosure," she says.
Setting up automatic payments to make loan and credit card payments, utilizing online banking, and enabling account alerts are just a few ways people can help insure their finances stay on course. Depositing your paycheck by way of direct deposit and setting up periodic payments to savings accounts will also help you systematically build savings.
And for those who truly cannot pay their bills, Weston advises there are still better options than ignoring your financial problems, including contacting your financial institution or lender to identify potential solutions to ease the situation.
To read the entire MSN Money story in full, click here.