Determining What Your Current Debt Is
Quote: The safe way to double your money is to fold it over once and put it in
- Frank Hubbard
The very first thing that you need to do to address your current financial
position and reduce and eliminate your debt is to determine exactly what your
current debt is.
Now this might seem very obvious and when you ask most people they would
probably say that they know how much money they owe but more often than not it
comes as a great surprise to them when they sit down with a pen and paper to
work out exactly what the current debt actually is.
It is very difficult to remember precisely how much you owe on so many different
areas of debt and it is only when you do take account of all the individual
debts and add them up that you can actually see the extent of your debt.
Be prepared for a surprise because that is what happens most often and it will
give you a really good picture of why you are struggling to make ends meet each
week and why all the income that might seem reasonable isn't enough to cover
So step number one on your debt management program is to address the situation.
It is only after you have done this that you will be able to create a budget
that will help you move towards eliminating debt from your life.
You will be able to compare your monthly spending to your monthly income and
that will give you the opportunity to see how much is left over if any to start
reducing your debt.
When you are making a note of your debt you must ensure that you put down
everything that you owe even the most minor of debts because at some stage they
need to be settled and even small debts that are left unpaid can give you a bad
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Budget to Gain Control
Quote: We can tell our values by looking at our checkbook stubs.
- Gloria Ste