When thinking about reducing and eliminating your debt, it is important to first make an accounting of all the debt you owe. It is helpful to have a clear picture of how much debt you owe. Mapping out an “inventory” of how much you owe can make it easier to plan and prioritize how to pay off your debt.
How can you eliminate your debt?
- Fill your inventory with every debt you owe (usually on a spreadsheet), including but not limited to: Credit cards, mortgages, student loans, auto loans, personal loans, medical bills, etc.
- Then take note of these details for each account/debt:
- Outstanding balances owed
- Interest rates (the cost of borrowing)
- Current monthly payments
- Payment due date
- Number of months behind in payments
- Contact information of the debtor (phone number & mailing address)
- Other important notes about the account
Use this information to answer these questions, and put your debt situation into perspective.
- What is your largest single debt?
- What is your largest monthly payment?
- What debt has the highest interest rate?
- Which accounts are you behind on?
“If you have more debt than you can manage, contacting the debt professionals at Ure Law Firm may be the best course of action. Contact Ure Law Firm at 1 (800) 250-5175 for a free initial consultation.”