Use A Debt Checklist To Examine Where You Are
A Debt Checklist allows you to look at items and areas of your financial life. You need to
examine these to gauge how you stand. Even if you believe you are in good shape take a close
look at these areas to be sure.
- Your Budget. Almost nobody likes this word, which is why so many people
have problems with their finances and debt. You need to know how and where your money is
being spent. In addition, you should be sticking to a spending plan.
- Your Savings Account. You should pay yourself each month. To do this
you need have an account in place, in which you keep your funds. At least until you can move
them to an account with a higher rate of return. Visit your bank or credit union to set one up.
- Your Use Of Credit. You need to review your use of credit to see how,
what, and where you are using it. Using credit to pay your bills or buying groceries is a recipe for
trouble.
- Your Percentage Of Income For Debt. Nothing makes it harder to stay
with your spending plan than credit card payments. You are paying for your past while trying to
purchase your present. If your percentage of income going toward debt exceeds 15 you could be
headed for trouble. Any amount over 20 percent, you need to put on the brakes.
- Your Minimum Payments. These add up. If you are to the point where you
ca only make minimum payments on your debts, you will stretch your indebtedness far into the
future. You don