Have A Reality Check – Take Ownership
Find Personal Support
Get An Overview Of Your Finances – Know What You Owe
Income | Amount (Monthly) |
Employment | $1,200 |
Benefits | $0 |
Child Support | $0 |
Total | $1,200 |
Expenses | Amount (monthly) |
Rent/Mortgage | –$600 |
Utilities | –$150 |
Food | –$160 |
Travel | –$50 |
Credit Card 1 | –$150 |
Credit Card 2 | –$200 |
Loan 1 | –$250 |
Phone | –$55 |
Total | –$1,615 |
Avoid PayDay/High-Interest Loans – Stem The Bleed
Cut Up Credit Cards – Restrict Temptation
Cancel Every Unnecessary Expense
Talk To Your Creditors & Explore All Options
Debt/Creditor | Amount Owed | Monthly Payment | Notes & Amount I can Afford To Pay |
Credit Card 1 | $4,000 | $200 | $25 – Spoke to Jenny in Customer Service |
Credit Card 2 | $6,000 | $250 | $100 |
Utility Bill | $800 | $25 | $10 |
Loan 1 | $3,000 | $100 | $10 |
This is going to be tough and a little time consuming, but it’s absolutely worth a try. You now need to call each of those creditors (customer services) and ask to speak to them about the money you owe. Remember, it costs them money to pursue you so being proactive and pursuing them to solve the issue can only be looked on positively. They want you to pay them back and most companies will help you do it.
Snowball Your Way Out
Debt/Creditor | Amount Owed | Monthly Payment | Snowball amounts |
Utility Bill | $800 | $25 | <— One Paid, add the monthly amount to the next debt payment. |
Credit Card 1 | $3,000 | $100 | $125 |
Loan 1 | $4,000 | $200 | $225 |
Credit Card 2 | $6,000 | $250 | $475 |