1. First, calculate how much you owe
The first step – assessing the damage and getting a full picture of how much you owe – might be the toughest step, especially for those who’re combating debt. It might be tempting to bury your head within the sand, but now that you’ve the numbers in front of you, it is time to face reality. Look at your bank and bank card statements and undergo the costs line by line. That way, if bank card fraud does occur, you possibly can be sure you recognize each purchase.
Add up how much you have spent in total, how much debt you now have on each card, when each payment is due, and the rate of interest on each.
2. Adjust your budget or create a brand new one, bearing in mind debt repayment
A summer review of your financial health gives you the chance to finish the 12 months on a high note and begin the brand new 12 months with a plan. Don’t be afraid to face your debt head-on and take responsibility by Creating a budget This will assist you to reduce your debt and avoid holiday debt later within the 12 months.
Make a listing of your fixed expenses, including mortgage or rent payments, bills, transportation and food costs, after which calculate how much can be left to your debt and other expenses.
For example, if you’ve $500 left after paying for room and board to your family, use the remaining of your income to repay your debt. If possible, automate your bill payments in order that they line up together with your paydays and also you do not have to pay late or missed payments or non-sufficient funds (NSF) fees, which might cost you as much as $45 or $50 per transaction.
If you have never created a budget before or feel like you would like extra help, we’ve a webinar for that! Don’t miss “Turning Cent$ Out of Money – Budgeting 101”
