Linda Chavey writes about how to change your lifestyle habits in order to eliminate debt.
If you have completed step one, you should have a list of all debts owed.
Place them in order from the littlest debt to the biggest debt, in dollar amount.
Add these columns to your list:
NAME OF DEBT
DUE DATE (DAY OF MONTH)
MONTHLY MINIMUM PAYMENT
Use a spreadsheet that can be altered so more columns can be added. Excel is ideal for creating and storing your list.
Example would be something like this:
NAME OF DEBT TOTAL OWED DUE DATE MIN PAYMENT INTEREST RATE
JC Penney $500 12 $25 22%
Macy's $1000 15 $45 18%
VISA $2000 1 $65 18%
MASTERCARD $5500 15 $120 19%
CAR #1 $9500 1 $375 5.5%
CAR #2 $17000 15 $435 6.5%
MORTGAGE $140000 1 $1400 4.5%
NOTE: Some of the information in the spreadsheet will be used purely for realization purposes. It will also be used for other purposes and exercises. It is important to include all information in this spreadsheet.
Analyze the debts on the list. Add up the monthly payments and imagine life without these payments. It is possible. It just takes determination and discipline.
You are now ready for step three.