Before you can start to eliminate your debt you need to know exactly how much you owe and to whom it’s owed to. This doesn’t have to be a difficult process, a simple excel spreadsheet will do as seen below.
(Click to Enlarge)
*NOTE* You will notice that there is no mortgage listed above. While it is considered a debt, for your own sanity it’s best to concentrate on your smaller consumer debt first.
Getting Organized
Sometimes your credit card statements aren’t up to date, especially if you are continuing to add to them or are making more than one payment per month.
It’s important to call the number either listed on your statement or the back of your card and get the most recent balance.
You can organize your debts however you like, by monthly payments, interest rates or total by creditor. There is really no right or wrong way.
Know Your Numbers
Many people don’t know what their total debt is. Ignorance will almost always lead you deeper into debt. By being conscious of your debt and knowing what you owe you will be in a better position to stop it before it gets out of control.
Your Debt Plan
Now that you know what your total debt is, you can start to develop a plan to get it paid off as soon as possible. After all that is the goal right?
One of the most effective ways to eliminate your debt quickly is by utilizing a debt snowball. You can read more about how to properly use the debt snowball here.
Tags: credit card debt, debt elimination, debt elimination plans, Debt Management, debt programs