Know Your Number to Erase Debt
To erase debt you need to begin by knowing your number.
No, not that number - not your FICO score.
Rather you need to know the exact dollar amount that you are in debt for.
Here's how to determine your own debt number so that you too can erase debt.
You need to calculate your debt number.
Figuring that out will help guide everything else.
It will set your budget for what you will pay off first and how much you need to budget to pay off everything else.
Having that knowledge will make erasing debt much easier.
So how much debt are you really in? You probably don't know.
Most people do not know and blissfully go through their daily lives without ever knowing.
Which is another reason they stay in debt.
If you don't know, it is a form of denial and you don't think things are as bad as they probably are.
Deep down you know you are in trouble, but, by ignoring the true debt number allows you the luxury of thinking everything is okay by being naive.
To find out your number you need to sit down and add up the total outstanding balances that you have.
Add up all of your consumer debt except for your mortgage.
Gather your paperwork and statements together to get these figures.
Make sure to include credit card statements, home equity loan balances, auto loans, personal loans from your friends and family, store card balances, gasoline card statements, education loans and any other loans you may owe.
Next on paper or in a spreadsheet list out all of your debts.
Just include who you owe the debt to and the total amount currently owed on it.
Finally, add up all of the balances and come up with one number.
The number.
This is your number, specific to you.
It is the total amount of debt you owe.
And it is this amount you would have to pay off right now to get out of debt completely except for your house.
So what is your number? $10,000? $30,000? $50,000? Or $100,000? Maybe higher.
I'm willing to bet that no matter how large the number you are probably surprised by it.
Maybe even shocked.
Don't let the number discourage you.
It is your first step to getting out of debt.
You may feel the urge to throw your math out the window and to be completely discouraged.
Do not do that.
Only by acknowledging your true debt picture can you ever begin to get out of debt.
So figure out how much debt you are in.
Determine your number.
And begin to develop a plan for reducing and eliminating that debt.
Budget, create a plan, erase debt and then you can begin to build wealth.
No, not that number - not your FICO score.
Rather you need to know the exact dollar amount that you are in debt for.
Here's how to determine your own debt number so that you too can erase debt.
You need to calculate your debt number.
Figuring that out will help guide everything else.
It will set your budget for what you will pay off first and how much you need to budget to pay off everything else.
Having that knowledge will make erasing debt much easier.
So how much debt are you really in? You probably don't know.
Most people do not know and blissfully go through their daily lives without ever knowing.
Which is another reason they stay in debt.
If you don't know, it is a form of denial and you don't think things are as bad as they probably are.
Deep down you know you are in trouble, but, by ignoring the true debt number allows you the luxury of thinking everything is okay by being naive.
To find out your number you need to sit down and add up the total outstanding balances that you have.
Add up all of your consumer debt except for your mortgage.
Gather your paperwork and statements together to get these figures.
Make sure to include credit card statements, home equity loan balances, auto loans, personal loans from your friends and family, store card balances, gasoline card statements, education loans and any other loans you may owe.
Next on paper or in a spreadsheet list out all of your debts.
Just include who you owe the debt to and the total amount currently owed on it.
Finally, add up all of the balances and come up with one number.
The number.
This is your number, specific to you.
It is the total amount of debt you owe.
And it is this amount you would have to pay off right now to get out of debt completely except for your house.
So what is your number? $10,000? $30,000? $50,000? Or $100,000? Maybe higher.
I'm willing to bet that no matter how large the number you are probably surprised by it.
Maybe even shocked.
Don't let the number discourage you.
It is your first step to getting out of debt.
You may feel the urge to throw your math out the window and to be completely discouraged.
Do not do that.
Only by acknowledging your true debt picture can you ever begin to get out of debt.
So figure out how much debt you are in.
Determine your number.
And begin to develop a plan for reducing and eliminating that debt.
Budget, create a plan, erase debt and then you can begin to build wealth.
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