Getting out of debt is not as difficult as most people think. There are many ways to eliminate your debt and having a good spreadsheet to track the progress is a very valuable tool. It will show you how much money you owe, when it was owed, what your income was and how much you have saved in interest.
What kind of debt should I include? Well, I will give you a clue, but before you jump to conclusions, let me give you a few things to consider.
When dealing with creditors to pay back their debt, the credit cards and the other loans you’ve accumulated may be included. Do not include these in your spreadsheet. This is because they are considered unsecured debts and therefore can not be included. In some cases, your vehicle is considered a secured debt and therefore can be included.
Other loans like those you received for a wedding or a vacation, they may have a higher interest rate than a loan you took out for a home. You can usually negotiate a lower interest rate and receive the money you need to pay back to get out of debt.
Make sure you have a place where you keep all of your records. You should also add other documents such as tax returns and financial statements to the spreadsheet as well so that it becomes much easier to deal with each month.
Keep a clear head and remember that the more organized you are the better off you will be in the long run. Take charge of your finances and get out of debt today.
A very important step to take is to set up a budget. This will help you stay on track and helps you pay off the debts quicker. I know that this sounds like a lot of work, but it’s not and you will enjoy the relief of getting out of debt as soon as possible.
Once you start making payments towards all of your outstanding debts, you’ll notice a change in your finances. In fact, the stress of all of the bills will lessen. So get started today and pay your creditors off now.