July 13, 2010

The First Step To Get Out Of Debt : List Your Liabilities

Make a List

The first step to improve a bad debt situation is pretty simple : make a list. 

Your death list...oops...your debt list!
And soon, your back-to-life list!

So, just write down your family’s debt report.  This report simply is a detailed list of your liabilities.  It should help you easily assess your credit situation.  This is the fist step for you to take back control.

This list should contain all your liabilities: credit cards, car loan, credit line balance, student loan, etc.

Do Not Forget

Your mortgage, probably the most important liability for most, should be included in your list.

Installment plans are also forgotten by many.  Especially, interest-free or postponed plans.  They should also be on your debt list even if your payments will only begin later (after the grace period) like the classic furniture store’s Buy now-pay later plans.

Your car lease should also be considered as a loan.

Several Easy Ways to Build Your List

For each item on the list, write down its description, balance, interest rate, anticipated settlement date, frequency and amount of payments.  

If you use good old paper, the web or software, this report will be an excellent starting point to improve your credit situation.

Taking about the web, an easy way to do this can be found on Gail Vaz-Oxlade's website here : Own Up to Your Debt Worksheet

It will probably take you about 12 minutes to write your own list, maybe 24.  Let's do it!

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