Bankruptcy & Foreclosures

Paying down debt without a plan is going to end up in disaster. This may be a bit harsh, but it is true in most cases. If you are going to be successful in getting rid of your debt, you must be methodical. In other words, have a plan that you are comfortable working. The last thing you want to do is jump all over place – this will make things more difficult than they have to be.

You have to be consistent. In other words, you don’t want to pay a few bucks on your debt this month, none next month, and then a few hundred the next month. You need to be consistent, month after month. Of course, if you want to pay more there is nothing wrong with that. Most people find it easy to stay on track when they know how much they are supposed to be paying, and then stick to this number month in and month out.

The method that you use to pay down your debt is up to you. Some people believe that throwing all their extra money towards their debt is the way to go. Others feel that they should take their time, only paying the minimum. There are some ideas that are better than others, but for the most part you have to follow your gut and do what works from a financial point of view.

If you want to have success paying down your debt, be as methodical as possible. This will help to keep your payments consistent and your money organized. In the long run, you will rid of your debt quickly and efficiently.

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? 

How you manage your debt is your decision. Some people use “old school” methods which consist of nothing more than a pen and notebook. Others buy personal finance software and use it for every last detail. One option you don’t want to overlook is using spreadsheets. This is free, and most people find it to be a great way to get and stay organized.

There are many benefits of debt management with spreadsheets. As noted above, organization is very important when it comes to managing your debt with success. When you have spreadsheets setup it is simple to stay on top of your income, debt, expenses, and anything else that needs to be tracked.

If you have Microsoft Excel on your computer, and most people do, you are ready to get started. All you have to do now is setup your spreadsheets to suit your needs. If you only need one spreadsheet, good for you. If you want more than one, and feel it will be beneficial, that is also a good idea. It does not matter how you use spreadsheets as long as you do so in a way that will make things easier on you.

Many people make debt management more difficult than it has to be. With a basic spreadsheet application this can be quite simple. At the very least you should give this option a try. You may like it better or worse than what you are currently doing. As long as you consider all your options it becomes simple to decide on the one that is best for you and your finances.