6. Sign up for Direct Deposit

Most employers have direct deposit or are getting it.  Even unemployment compensation offers direct deposit as an option to receive benefit checks.  On payday, the amount of your paycheck arrives in your account and is readily available.  To set up, you only need a voided original check or photocopy so the bank can see the numbers at the bottom.  It usually takes a few weeks to establish and is well worth the wait.  However, you still should receive a payment stub from your employer, listing the itemized deductions for that period.

7. Get Overdraft Protection

Most banks have a service where, if you run the risk of bouncing a check, the money will come from another source.  For a nominal fee, the bank will link your checking account to either a savings, money market, or credit card so the embarrassment of bouncing a check will be avoided.  Call or visit your bank to learn about this convenient feature.

8. Cancel Unused Accounts

Whether it’s a credit card or bank account, write a letter requesting that the account is formally closed.  Not only will this improve your credit score, it is a useful way to avoid money from being scattered all over the place.  Don’t let department stores and credit card companies lure you into opening new accounts by offering favorable interest rates and purchase discounts.  It’s easy for credit to get out of hand by taking advantage of every credit offer that comes your way.

9. Consolidate Your Accounts

If you have several credit card accounts with outstanding balances, try to consolidate them into one.  Be careful and check the balance transfer interest rates and one-time fees.  Also, make a list of all your open Money Markets, Savings, CDs, IRAs, Mutual Funds, and other accounts to see if any consolidation can be done.  Keeping you money in fewer places eliminates all of the guesswork involved and reduces errors.

10. Establish Automatic Savings

Create a link from your checking account into a savings account that will not be touched.  This can usually be done through the banks and automatic amounts will be transferred over each month.  Most people will not put money into a savings account on a regular basis.  They may wait until a large tax refund check arrives or some other event to actually deposit money into savings, retirement, vacation, college, or other accounts.  If you establish an automatic savings deposit every month, your accounts will begin accumulating faster than you think.

11. Clean up Your Files

Make sure your paid bills are organized in a filing cabinet away from the rest of the house.  Keep individual files for paid bills.  Go through your files at the end of each year and throw out bills and receipts no longer needed for auditing purposes.  Contact your local IRS office to see how long records need to be kept for audits.  Usually federal tax return audits can be done three years back but cancelled checks may need to be kept for seven.  Consult the Internet for auditing and records-keeping procedures for your state or region.

© 2005 DebtGuru.com®. Michael G. Peterson is the Vice President of American Credit Foundation, an IRS 501 (c)(3) non-profit consumer credit counseling organization that has assisted thousands of individuals and families with their financial situations through seminars, education, counseling services, and, debt management plans. For more information, and free consumer resources visit www.debtguru.com