Awhile back I started to do a series where I was showing people how to pay down debt and save money even when you think it is impossible. I know it is possible because I am doing it very slowly. I have struggled for years and I am getting back to doing the work. If I can do it on 17000 a year than pretty much any one can if they really do the work.
Today I am introducing the first part. It is figuring out just what you owe. You need to see the big picture in order to get it under control. When you see it and know if it is growing or shrinking you are more in control of the situation.
How ever you want to to log it is up to you but you have to keep track. I personally like to use a composition note book and do it by hand. If you want to go digital that is fine. Some people are really good at spreed sheets so that might work for you. Also if you are a part of a couple you need to work together also so you are both on the same page.
You take all your bills and list them and the amounts that you owe. Then make a column that says total and add them all up so now you can see exactly what you owe. No matter the number do not beat yourself up. What ever the number you can do this. Life happens and you now need to face it and deal with things where they are right now.
Each month you will add and subtract based on your statement, You will add interest back to the balance and subtract any payments you have made. So if you got charged $3.00 interest add that and if you made a $25 payment you subtract that. Then you go to the total amount owed and do the same. This way you keep an accurate account of what you owe.
Ok so you now know where to start. I will keep giving you ways to get out of debt and save money. If you have questions please comment I am here to help.