Getting Out of Debt_3b Is Possible When You Spend Less Than You Earn
Getting out of debt_3b is so much easier to manage if you know how much you really owe. But how many of us really know how to calculate that? It is not as straightforward as getting the figures from the statements you receive. Why? It is because the amount you borrow is different from what you have to pay. That is why we have to be vigilant about paying it on time.
It all begins here, knowing how much you really owe. We did some of this on this page. But let us do it here because when we did that it was in relation to the budget spreadsheet. So let’s get going, shall we? Now get all the information you have on every debt like your mortgage, car loan, student loan, credit cards, line of credits, furniture loans, appliance loans and other personal loans you may have.
Get a piece of paper and write down in the first column the debt issuer, in the second column, how much is the balance, in the third column how much is the monthly payment, fourth column what is the interest rate and in the last column, write down the date each one is due. Total the figures in the second column and as well the total of the third column.
There you have now the total exact amount you owe and the total amount of monthly payment you have to make. This might give you quite a surprise but don’t panic; you have just gone over the first hurdle. This is the first step and you have done it so congratulations are in order. And now we can start working on getting out of debt_3b knowing what is what.
You now have a better standing of personal debts. You know this is a crucial step in getting out of debt_3b. You have to know how much you know and to whom. You have the lenders’ names. But the way we did it is not the only way to know how much you owe. There are several ways. There is a low-tech way like we did and the high-tech way.
The way we did it is the low-tech way and it is the slowest way to do it but I kind of prefer it as most people understand it. The results are the same anyway and we find how much we owe works as long as we keep track of the information from month to month. How do we do this?
We can track how much we owe through three different ways. One is through a personal finance computer, an online service and through a spreadsheet. You can do it automatically or manually through a spreadsheet. I also prefer to do it manually on a spreadsheet or in a notebook.
You already have the first list of how much you owe, the name of the lender, the interest rate, the monthly payment and the total for both the monthly payment and the amount owed. All you have to do when each bill comes is to add the information from the bill in the next row.
The bills will not come all at the same time, so you will have to wait till they come and you have paid them before adding the total for the amount owed and the monthly payments with the use of a calculator. You will love this because, you will see your debt going down as well as your monthly payment.
This of course will work very well if you no longer incur any more debt. You deserve to be financially independent so why get any more debt when it only makes the lender richer at your expense? We all know that the only way to achieve our goal of no more debt is if we spend less than what we earn. It takes some discipline, I know, but I also know that if you do this diligently, you will be getting out of debt_3b.