Know Your Total Debt

This next rung is to know how much you owe.  You need to gather all of your current month’s bills. You might have been throwing them in a drawer, maybe even without opening them.
Know Your Debt

RUNG 3

This next rung is to know how much you owe.  You need to gather all of your current month’s bills. You might have been throwing them in a drawer, maybe even without opening them.

Now, it’s time to pull them out. If you have any old statements, you can either file them away or shred them. [Caution: Do not throw them in the garbage can, especially unopened. That is a good way to have your identity stolen by someone who “dumpster dives”.]  This serves two purposes, one you will be able to identify who you and what you owe and secondly, you will feel relief in seeing that pile of bills go down.

Please remember that if you are married and you have been keeping a credit card or credit cards debt, loan, or any other debt from your spouse, now is the time to come clean. Lying destroys the trust between husband and wife.

"You shall not give false testimony against your neighbor", which means that you should be truthful when communicating.

Exodus 20:16

Paul says that we are to “speak the truth in love.”

Ephesians 4:15

"Dear children, let us not love with words or speech but with actions and in truth."

1 John 3:18

“Therefore each of you must put off falsehood and speak truthfully to his neighbor, for we are all members of one body”

Ephesians. 4:25

Spouses if you are in this situation do not get angry. This will only hinder your climb. Forgive your spouse. Jesus commanded us to do so.

Then Peter came to Jesus and asked, "Lord, how many times shall I forgive my brother when he sins against me? Up to seven times?" Jesus answered, "I tell you, not seven times, but seventy-seven times.

Matthew 18:21-22)

Once you have all your bills together, take out a sheet of paper or if you have a computer use an electronic spreadsheet program like Excel or it’s free equivalent Open Office from www.openoffice.org.  Divide your paper into four columns.  Title the first column Creditor. The second column will be Amount Borrowed. The third column will be Balance. The fourth will be Interest Rate.

CREDITORAMOUNT BORROWEDBalanceInterest Rate
Credit card 1300028006 %
Credit card 2$5.000.0025005%
Auto loan25000220003.75%
Mortgage2600002300005%
TOTAL293000257300

Once you have all your bills together, take out a sheet of paper or if you have a computer use an electronic spreadsheet program like Excel or it’s free equivalent Open Office from www.openoffice.org.  Divide your paper into four columns.  Title the first column Creditor. The second column will be Amount Borrowed. The third column will be Balance. The fourth will be Interest Rate.

The next thing you need to do is total the amounts in column one and column two. Column two is your most important figure because this tells you how much you really owe. It also identifies the creditor with the lowest balance and the one with the highest balance.

Congratulations! You have climbed the third rung. You know how much debt you have and you can identify your lowest debt and your highest debt.

RH

RH

Share on facebook
Share on twitter
Share on linkedin

About Me

Hi, I’m Rosie. A Jesus Freak, wife, mother, and a Certified Financial Coach. 

This site is dedicated to you, our reader. Within the site you will find tools that will help you achieve financial freedom, so that someday you will become debt-free and be a generous giver.

Recent Posts

Follow Us

Related Posts

Scroll Up