Debt Management Progress: Are you making any?
Paying off debt is all about making progress. If you continually get rid of debt, month after month, it will eventually go away. Of course, adding new debt while paying off old bills is counterproductive. Those who are making progress with paying down their debt have a plan. Those who just “wing it” usually find that their debt management plan is not nearly as sound.
To know what type of progress you are making it is important to have a plan. And not only do you need a plan, you must follow it from start to finish. Anybody can put together a debt management plan and a budget, but when it comes down to it you have to be willing to stay on track no matter what happens.
A simple spreadsheet or notebook can show you if you are making any progress in terms of debt management and payoff. To start, you need to write down your total debt. For instance, $10k. At the end of each month, after paying your bills, calculate your balance. Hopefully it is less than what you started with. If it is, you are making progress. If your debt balance is now higher it means that you added to it during the past month – this is not a good thing, and will greatly stunt your progress.
If you are not making any progress, or have no clue where you stand, now is the time to put together a solid debt management plan. Your plan will help you stay on track, and eventually get rid of all your debt. Sounds simple enough, right?
