Ready to tackle your debt? Use the Debt Repayment Plan Worksheet to get a handle on how much debt you have, and to map out your plan for paying it back.
How to Use the Worksheet:
1. Write down all of your debts. Include all of the important details – current balances, interest rates and minimum payment requirements.
2. Add up all of your minimum payments. Then, go over your budget to figure out how much more you can afford to apply to your debts. If you can only afford the minimum payments, look for ways to trim your budget and bring in extra money.
3. Now, decide which debt you want to tackle first. It can be the one with the highest interest rate, the smallest balance or just the one that weighs on your mind the most – the choice is yours.
4. Add the extra money that you earmarked for debt repayment to the minimum payment amount of the debt that you chose to go after first, and write that figure on the "new monthly payment line."
5. Make the minimum payment on the rest of your debts, until you've paid off the first debt. Then, choose the debt that you want to go after next, and calculate a new monthly payment for that debt. It should include all of the money that you applied to the first debt, plus the minimum payment requirement for the second debt.
6. Continue tackling your debt, until it's all paid off. Hang on to your Debt Repayment Worksheet as a reminder of all of your hard work (Fridge magnets were made for stuff like this).