Assess Your Debt

Debt Recovery & Debt Management Advice

When you meet with a debt expert about debt management advice, their first recommendation will be to explain your situation. By doing so they can give you tailored debt advice that addresses your particular needs and circumstances. This is a crucial step toward debt recovery.

Assessing your situation helps you find a reduction plan that works for you. Determining your current debt situation can help get you on track to better debt management and resolution. Here’s how to get started:

  • Collect your most recent statements, including credit cards, bank loans, student loans, car loans, mortgages, utility bills, and even family and payday loans.
  • Make a list of everyone you owe money to, including the type of debt, interest rate, what you owe and your monthly payment amount.

Example:

Creditor Type of Debt Interest Rate Amount Owing Monthly Payment
Credit Card 1 Credit Card 18% $6,459 $150
TOTAL

If you’re surprised at the amount of money you owe, you’re not alone. Some people have no idea how serious their debt problems are until they see them on paper. The good news: now that you know, you can start taking steps toward debt recovery.

Can You Get Out of Debt on Your Own?

Now that you have a clear picture of your debt situation, it’s time to find out if you can repay your debts on your own, or if you need help. Start by creating a budget to outline your expenses. If you have money left over at the end of each month, you should use that money to repay your debt faster. If you don’t have extra money, try to reduce your expenses. The more you can cut back, the faster you can move toward debt recovery. Learn more about how to budget your money.

Debt-to-income Ratio

Even if you’re making your monthly payments, you might still have a dangerous amount of debt. If your debt-to-income ratio is more than 36%, you should take action to resolve your debt right away. Calculate your debt-to-income ratio.

Debt Repayment Calculator

Find out how long it will take you to repay your debt based on your monthly debt payments. Try our Debt Repayment Calculator.

If you find that you can’t manage your debt recovery on your own, you may want to explore your debt relief solutions.

Debt Reduction Plan

After you assess your debt, it’s time to create a personal debt management plan to eliminate it once and for all. Try this strategy for getting started:

  • Use a budget to determine how much you can afford to pay each month.
  • Create a payment schedule that pays down your highest interest rate debt first.
  • Stop using your credit cards–you don’t want to add to your debt burden.
  • If your debt is too much for you to handle alone, get professional debt management advice. An accredited debt expert can help you evaluate your situation and explore options for recovery. Talk to an advisor today.