Sunday, September 13, 2009

Debt and Procrastination

How many times have you paid extra money because you procrastinated paying your bills or forgot to cancel a service on time? Procrastination in essence is deferring the work for future time. Whereas, debt by definition accumulates more interest and penalty fee with the further deferment. Thus, procrastination is very unprofitable for you.
Here are few ways to beat procrastination for better financial health.
  • Immediate Action. If certain items take less than 5 minutes to do, you should just do it. Since it’s not worth the time to schedule, it will either be nagging you or you will forget it. So, for minor items go ahead and do it, nobody is too busy to not have 5 minutes.
  • Automate. Setup automatic payments for all your bills. It takes usually few minutes to setup the payment and information you need is usually in your personal check. Automatically deposit of all your income (if possible) or develop a habit of depositing it on a same day (there are 24 hour ATMs).
  • Review. Every first Saturday morning of the month review your accounts for 1 to 2 hours. Make sure to setup automatic reminder in application such as phone, email to remind you of review. The review should include; paying extra payment on your debt than you scheduled, calling customer service to renegotiate term, fee or interest, canceling any unnecessary subscription.


  1. I much prefer immediate action. Automation scares the hell out of me :) I don't want them debiting any more than they should, even by mistake!

  2. Indeed "immediate action" is the best solution but automation can help for fixed monthly expenses such as cell phones etc.