There are a few reasons why it is smart to hold your Contribution Funds in a distinct bank account that is completely separate from your other money.
Keep track of funds dedicated for resolutions: Dealing with credit card debt can be overwhelming at times. Why add to that feeling? Keep it simple - separate the money for resolving your debt from the rest of your money. By keeping all funds that are dedicated to resolving debt completely separate from your other money, you will know in an instant how much you have to work with when it comes time to negotiate with a creditor.
Dipping into your settlement funds for other reasons: If you were to keep all of your money together, it is more likely that you will spend some of the funds dedicated for creditor resolutions on other things. Avoid the temptation, keep your Contribution Funds in a different bank account. This will hopefully discourage you from dipping into money that is budgeted for your creditor resolutions.
Protect your funds: When working towards resolving your debt, it is safer to keep money in a bank account that your creditors are not familiar with – an account that is not associated with any creditors you owe and an account that you have not used to pay any of your creditors. Should any heightened activity occur, it is safer to have your Contribution Funds in a separate bank account that is in line with the Good Choice Banking Guidelines.