Go Ahead and Auto-Draft

Brandon asks if it's a bad idea to have student loan payments auto-drafted. Dave says no.

QUESTION: Brandon on Facebook asks if it’s a bad idea to have student loan payments auto-drafted. Dave says no.

ANSWER: No, it is not. It’s not a bad idea to have any of your normal payments drafted. I do a lot of things on auto-draft, and it just makes my life easier. It is a bad idea to do that and not have a budget. If you don’t have a budget, you can auto-draft your student loans and not have money to pay for electric bill or not have money to pay for your food.

You need to have auto-drafts working as a part of a written plan where you know where your money is going. That simple. That’s fine.