The first segment of Your Money & You gave you some insight and tips on tracking your cash flow, creating a monthly budget, and cutting expenses. While these are major steps in gaining control of your finances, the buck doesn’t stop there. Even after creating a sound budget and cutting unnecessary expenses, you may still find yourself with debt that you need to get rid of. So next we’re going to take a look at debt management and see if we can’t help you help yourself.

I’m sure in some way, shape, form or fashion all of us have debt. No matter how much or how little, one thing’s for sure…you can’t wish or blink it away. And NO, “poof be gone” doesn’t work either. No matter how many reminders you throw or stash away or nagging phone calls you ignore from bill collectors, you just can’t do it. So why not use all that time, energy and frustration toward paying it off. Make a conscious decision to get out of debt and stick to it. Let me warn you though, this will require patience, sacrifices and the willingness to make some changes.

The first thing you need to do is figure out who and how much you owe. Get a current copy of your credit report and use recent statements from your creditors to make your list. Lay out all your debt and add it up. This may be a little scary for some, but keep it real. The only way you will be successful is if you’re honest with yourself about the depth of the problem. By the time you’re done, you should know:

  • how much you owe, and to whom

  • how much interest you’re paying on each debt

  • what your monthly minimum payments are

Once you can see the full picture, you can then better execute your plan of attack. Next week we’ll start exploring some debt-reduction strategies and give you some insight into managing your debt. Remember it’s time to take control of your money and increase your success rate. So stay tuned for more on Your Money & You!

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