Get Prepared to Get Out of Debt
If you want to do this right, you want to make sure that you know where you stand before you start. You need to have a complete picture. Here’s what you need to do.
- Gather your most recent statements for all loans and credit cards.
- Get your free annual credit reports to check them for accuracy and to identify all debts.
- Check the National Student Data System to gather all student loan information.
Make A List
Having everything written out in front of you is really the key to success here. Plus, once you’ve written it all out, and it’s right there in black and white, it may not seem as insurmountable as it did before.
- Make a list of all your debts: name of creditor, interest rate, balance, minimum monthly payment.
- Also list the three-year payment for each debt, as found on credit card statements.
- Remember to include loans not listed on your credit reports (e.g. family loans, medical bills)
Get Your Number
Once you know what your total payoff number is, you’ll have a real, complete goal to work towards.
- Total the three-year pay-off amount for all your credit cards.
- Add the monthly payments for all other debts.
- Write down the result: Your Total Monthly Payment.