Consumer Debt Management Plan Repayment Tips Tools
Do you know how many credit cards you have?
1, 2, maybe 10 cards? Do you know how much consumer debt you currently owe on these credit cards? How about your student loan debt and vehicle loan debt? Are you aware of the interest rates and the late payment fees? Not all debt is bad. If you are paying a mortgage on a house and are collecting rent on the house you are making money off the debt. How much money are you making off your consumer debt? Using the consumer debt management plan repayment tips and tools on this page can help you live consumer debt free!
The first step to creating your personal consumer debt management repayment plan is to tally your debt.
You can use Microsoft Excel for Mac or PC or use our consumer debt management plan repayment spreadsheet tool. Find the most recent statement for each credit card, student loan, vehicle loan and other consumer debt. Input the total amount of current debt, the current interest rate, and the current monthly payment for each credit card or loan. Then, tally them up for a grand total.
Are you surprised at how much you owe? Is the consumer debt more or less than you expected? Are you willing to cancel all but one or two of your credit cards?
Now that you know how much your debt is
, find the debt with the highest interest rate. Pay this one off first while still paying at least the minimums due on the other loans and credit cards. When the first debt is paid off, ADD that monthly payment to the debt with the next highest interest rate. When that debt is done, ADD that monthly payment to the debt with the next highest interest rate. Keep the cycle going until all debts are paid.
Consumer Debt Management Plan Repayment Tip
If you have loans of very small amounts, pay those off first even if the interest rate is not the highest. That way you will have fewer bills to deal with, thus reducing your consumer debt management repayment stress.
Reward Yourself!
Each time you retire a debt put a star next to it on your consumer debt management plan repayment spreadsheet, give yourself some well-deserved applause, and then, reward yourself with something you can afford, i.e. a relaxing day at the beach, a bubble bath or a dinner out.
Personal Finance Tip:
While you are paying off your consumer debt, cultivate the habit of buying only what you can afford that month. The information on the Personal Budgeting Tips and Tools page can help. Also, open an Online Saving Account to help cultivate the habit of saving each month. Learn to save money while working on your consumer debt management repayment, so it is easy when your consumer debt management repayment is complete. You can also using Quicken as your personal budgeting software debt elimination tool.
Consumer Debt Management Plan Repayment Tip
Once all consumer debt management repayment is complete, pay all new credit card charges in full each month. Transfer the money you have been using for your consumer debt management repayment each month into your Online Saving Account.
Caution
If you are considering unsecured loans for debt repayment, consider the disadvantages of debt repayment. Many people obtain loans to consolidate their debt. Later they run their credit cards up again, owing even more than before.
Also, if you are considering working with a company that provides debt reduction assistance or debt elimination services, check their credentials and ask for their debt settlements / repayment plan in writing.
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