Some people will tell you that consolidation companies are just sharks waiting to take advantage of your financial situation and charge you to pay off your own debt.  While I’m sure some companies are likely out to price gouge their customers, choosing a good consolidation company (or negotiating a debt repay plan on your own) can be a huge boon to your financial life — it helped me pay off $15,000 in student loans and credit card debt within two years.  There is one caveat, however; you absolutely must not miss a monthly payment.

The consequences of missing a payment once you’ve set up any sort of payment plan, consolidation or no consolidation, are many and far outweigh the benefits of using such a program.  Unfortunately, for many young adults with a part-time job or a job that works off of tips, these plans can be tricky, given that your monthly income likely fluctuates.  But working with a company that is willing to negotiate a debt repayment plan can help you lower your monthly payments and save a ton of money in interest in the long run.  So, how do you make sure you stay on the track to total debt freedom?  You set yourself up for success by making your payment plan as sticky as possible.  This is how:

1.  Automate Payments

Have your payment set up with your bank so that it goes through the day after you get paid.  Doing this will make sure that you never even see that money and you’ll get used to living off the remainder of your paycheck.  An additional bonus?  You’ll likely forget you’re even making payments, and when you check your balance on an afterthought, you’ll be pleasantly surprised at how quickly it’s decreasing.

2.  Stop Card Activity

If you’re on a repayment plan, there’s a good chance that you’ve probably maxed out your spending limit.  But if you haven’t, lock your card in a safe place, and make sure you don’t carry it out with you to deter adding to your spending limit and continuing the vicious cycle of accruing more charges on top of your current balance.

3.  Set up a Depreciation Calendar

One of the best ways to keep yourself motivated to pay off a high balance is to watch your balance whittle away as you make steady payments.  Printing out a calendar with the dates of your automated payments is an excellent way to visualize the balance getting smaller.  On the date of each scheduled payment, pen in the new balance.  This will provide a visual aid of your declining debt, and will keep the motivation high to continue snowballing the balance.

4.  Check in with Creditors Regularly

Setting up a recurring date to speak with a consolidation counselor or a debt repayment plan agent will help hold you accountable for your payments.  Speaking with a counselor on the last day of every month is a great way to review your progress and goals with someone in an position of authority, making it more difficult to miss a payment since you’ll have to answer to a real live human being down the road — not just some automaton spitting out a quick warning.

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