How to Track Debt

Failing to keep track of financial debt will create loads of problems down the road. If you do not pay close attention to financial transactions, debt will become out of control and difficult to reduce. CNN Money states, "If you want to get your debt under control, start by figuring out your spending patterns and identifying unnecessary expenses." Diligently tracking financial debt will not only make you aware of spending habits, but it will put you on track to excellent financial health.

Instructions

1




Retain a copy of your credit report every year.

Make sure your accounts are in good standing by reviewing your credit report every year. By law, individuals have access to one credit report yearly from the three major credit bureaus--TransUnion, Experian and Equifax. According to the Federal Trade Commission, "Identity thieves may use your information to open a new credit card account in your name. Then, when they don't pay the bills, the delinquent account is reported on your credit report." If you fail to monitor your credit report, this type of debt will remain in your name and ruin your credit.

2




Keep track of financial information with a spreadsheet.

Create a spreadsheet with a computer program, or dedicate a blank notebook for financial information. Record all monthly bills, expenses and credit card payments, including interest paid. Record your monthly income to help keep track of money you are spending compared to what you are taking home.

3




Review monthly expenses.

Dedicate one day each month to reviewing monthly expenses. Match all receipts to credit card and bill statements. Designate a file for all monthly expenses and receipts.

4




Organize financial information.

Organize financial information for easy access and tracking of debt. Sign up for email reminders of bill due dates. Consider direct deposit for monthly bills to ensure prompt and secure payment.

5




Sign up for a phone application.

Sign up for a phone application that specializes in tracking financial debt. Phone applications can alert you to excessive spending and encourage healthy financial choices.

6




Hire a financial adviser.

Hire a financial adviser or enlist a reputable credit-counseling agency to help you get into a workable system of regularly tracking your debt.