Once your debt consolidation has been finalised, the next step is to look at your savings accounts and how your money flows. Setting up your accounts properly can prevent the feast and famine approach to managing bills, mortgage and other loan payments. The feast and famine approach is where the cyclical nature of bills ie quarterly electricity and gas, annual rates, etc. causes periods of no bills and over spending, then being low on funds to pay when the accounts arrive. Here are some tips to smoothing out your cash flow:

1. Calculated (or approximate) your annual cost for all your bills then divide by 12 months and set the monthly figure to be paid to the respective accounts. Add a small amount and over time you will be further in front and can usually obtain bettrr discounts on bills.
2. Do not have the billers draw the payment from your account. You should setup auto pays so they can be turned off as required. Failed payments can be expensive with fees by the billet and your bank. When your low on funds turn the auto payment off and inform the billet you will pay at a later date.
3. Arrange your home loan payment to come out of a single account (account 1) with no other direct debits – this is so no surprise direct debits or auto payments cause a mortgage payment to be missed.
4. Set up your wage into a seperate savings account (account 2) where the direct payments for bills are paid.
5. Auto pay the mortgage payment from the wages account (account 2) (+$100) into account 1.

This structure may seem complicated but is very simple once set up. All you need to do is monitor the money going in. The effect of this structure is amazing. You will never feel the stress of a large bill again.
If you would like to discuss this structure further, feel free to call Colin on 1300 796 850 for more information on our Debt Consolidation Loans.