CREATE A SPENDING PLAN – PART 2
Now that we’ve got our recent spending tracked, it’s time to get a good look at everything we owe, and what interest rates we are carrying with that debt.
- Analyze Your Debt
Once again, we need to pull out all of our bills and statements to find out everything we owe. It might not be pretty, but the sooner we assess the damage, the sooner we can get on track to reduce and eliminate it! If we are going to fight this, we need to know our enemy!
Gather all the information about each debt, including total debt amount, interest rate, minimum/monthly payment, and due date. Create a table or spreadsheet with this information.
|Creditor||Balance||Interest Rate||Payment||Due Date|
|XYZ Mortgage Co.||$123,500||5.5%||$879||1st|
|Student Loan Co.||$43,000||3.0%||$75||20th|
Have you accounted for all of your debt? It’s a good idea to contact the 3 major credit bureaus (Equifax,Transunion, and Experian) and ask for a free credit report to make sure that you don’t have any debts in collections or debt you’ve forgotten about. Be sure to check your report for any late payments, or even any incorrect information you may have to dispute.
Now that we’ve laid out all of our debt and gathered information needed for our plan of attack, we need to commit to eliminating that debt! (New rule: don’t add to your debt!) Ready for the next step of our spending plan?
What have you discovered about yourself in this step?
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