The first step toward paying down debt

Debt is stressful. We may worry about how we are going to pay it off, how we can afford unplanned expenses and wonder about our financial future.  Paying back debt can help ease our stress and help us save money over the long term by reducing interest costs.  Working with a professional can help make this plan more attainable.

One of the first steps toward managing debt involves creating a list of all the different debts one owes and to whom.  Make sure to write down the remaining balance and interest rate of each debt so you can calculate the total cost of your debt. Include how much you are currently paying back each month, and how much is remaining. Secondly, calculate the total cost of all your monthly expenses. Next, write down all your sources of income and your monthly total.  These tasks might feel overwhelming at first but by creating a detailed overview of your current financial situation you can begin to build a realistic plan.