If you have recently worked out a settlement plan with Barclay Capital, you may be struggling to figure out how to set money aside for the payments every month. There are several ways to go about doing this, but the easiest option is to set up a separate bank account for your tax savings. This will give you an account to pull from when the time comes, and it will ensure that you don’t mix up your tax money and your personal finances. Here are some options to keep your tax payment account plentiful in the future.
Automatically Draft Deposits
If you know that you have to pay a certain amount of money toward your back-taxes every month, you may want to set up an auto-draft to put money in your account for you. This will help you avoid missing out on a month of savings and potentially coming up short on your taxes.
Use a CD to Save
You could put your tax money away in a short-term CD, and that will give you less access to your money than you would have in a checking or savings account. Most CDs will have fees associated with them if you try to pull money out early, so you will be forced to keep your money in there until you need it.
Assess Your Balance
Compare the balance in your account every month to the amount of money you think you owe in taxes. This will ensure that you keep the balance as high as it needs to be. If you think you are low one month or another, you can make adjustments to replenish the account.
Use a separate account to save for your taxes, and you won’t have to worry about debt in the future.
