Most of us at this point in our lives have debt. But do you know where it is? Or how much you owe?
If you’re thinking about getting your finances under control, you might not know where to begin. When first starting on your journey to financial freedom, you need to figure out where you’re at. And that means gathering up your bills, logging into your online accounts, and making a list of all your debts.
I know this can seem overwhelming. It was for me… when I first started on my debt-free journey, the first thing I did was make a list of all the debts I owed. I was shocked. You see, when I first added up my debts, it totaled $140,640.41.
I cried. I had no idea I was in that much debt! And I was scared to face it.
Admitting you have a problem
They say the first step is admitting you have a problem. So that’s what we’re going to do today: admit your problem.
You’ll soon find that it isn’t as scary as you might think. And figuring out a path to paying it all off is the first step to getting your finances under control. And I’m here to help you face your financial fears.
Each of us must confront our own fears, must come face to face with them. How we handle our fears will determine where we go with the rest of our lives. To experience adventure or to be limited by the fear of it. – Judy Blume
You can download this free printable worksheet from my Resource Library to make it easier, but plain old regular paper works just fine, too. If you haven’t yet signed up for access to the Free Resource Library, just click here and – BAM – it’s yours.
Gather your intel & make a plan
The first step is to gather up your most recent credit card statements, loan payment records, student loan receipts, and information on any other debt you can think of. List all of them in no particular order. Include in your list the total balance, the interest rate, and your minimum monthly payment.
List all of them in no particular order. Include in your list the total balance, the interest rate, and your minimum monthly payment.
The second step is to determine the order you’re going to pay them off. And the best way to pay them off is to start with the smallest debt first. That way, you get an easy win early on and this fuels your momentum to keep going.
On your paper, or on the printed worksheet, list your debts in order of smallest balance to largest. This is going to be your attack order – the order that you knock them out, one by one.
I know you might not think it’s possible. But you really can pay them off. It takes a little determination and a lot of focus, but you can do it. I’ve paid off a whopping five credit cards in my debt-free journey! So I know it can be done. And you can do it, too.