Effective debt management is a key element of the financial well-being of a family. Personal debt is the total amount of money you owe to creditors. Some debts, such as a mortgage or student loan, are almost inevitable and may even be financially beneficial. Other debts, such as credit cards and other consumer debts, can quickly destroy a budget. Calculating debt is one of the components to maintaining a solid financial base and controlling your finances.
Write down all banks, financial institutions, stores, and friends / family members whom you think you owe
This is the first step. You do not have to write down how much you owe, just write down to whom you already know you owe something. Write “Debits” on top of this paper.
Get a complete bank statement and credit card statement
If you have access to Internet Banking from your bank, you can get the statement and online invoice from your account and credit card. If you do not have it, you can call your bank and obtain this information or, if you prefer, you can go to the nearest branch of your home and obtain this information from an ATM. Write down all the values of loan debts, financing and how much you owe on your credit card in one paper. Loans and financing are usually accompanied by a debit balance, ie what remains to be paid. Write down this total amount and not just the installments that you have paid for.
Write down your account balance and salary on a separate sheet
Also include additional earnings, such as tips you can make over the weekend. Write down all these values in order to visualize your earnings and thus, be able to better organize your debt viewing. Write “Credits” at the top of this paper.
If you do not have up-to-date and constant debt control, the tendency is for you to sink deeper and deeper into debt and harm not just you but your whole family. (Photo: www.governmentgrantlist.org)
Call the financial institutions / banks, enter your internet banking or talk to your manager to confirm the values you should
The information available on loans and financing can be confusing for many. For you to have a better understanding, you can contact your bank or financial institution through several different service channels for more detailed information. Be sure to ask for the amount of both the installments and the total amount due. Write down all the information next to the paper where you wrote the people and institutions to which you owe.
Add the amount of accounts you have to pay every month
This means that you should add to the role of “Debits” the value of bills of light, water, internet, TV, gas among others. Do not leave any of them out.
Add up the value of all monthly costs and the total cost of debt
This means adding the values of all installments of loans and financing to the monthly accounts for the monthly debt and adding up all the total amounts for the total debt. Write down these separate values as it will help you better organize your payments.
Subtract from your “Credits” the monthly debt costs
Thus, you will have an idea of how much of your salary is going away every month, including already your spending on credit cards. From here, you can start planning the management of your finances through a family budget. This means that you will be able to know where you can cut costs so you can anticipate loan and financing payments, saving you good money from it. Do not forget to also update your data monthly with the new payments and discharges. Also, you will also learn how to better manage your credit card purchases and who knows, no longer depend on plastic money?
We hope you have not left any doubt in this article. But if you have any questions, do not hesitate to comment in the space below or, for more specialized tips, talk to the manager of your bank. Never let a stranger help you make these accounts because they can use this information against you.