How to Keep Track of Debts

In 2011 the U.S. Census Bureau reported that as a whole American citizens held $14,001,000,000,000 worth of debt in 2009. That being said, creating a system to keep track of and manage debt has become increasingly important. The good news is that most creditors are more than happy to update you on your debt status and may even be willing to work with you toward the goal of paying it off. The main ideas behind keeping track of debt are knowing how much you owe and organizing that information.

Instructions

1

Label one file folder per type of debt or income you have. Store these folders in a single place, such as a filing cabinet. This will make it easy for your to find and access all of your financial information.

2

Obtain official information about the debt you owe so that you know the exact total and can file this important information into your financial folders. You may need to call companies to request copies of debt statements.

3

Calculate how much debt you owe from credit cards, mortgage, loans, rent and other expenses. Type these figures into a spreadsheet, with rows for companies to which you owe money and columns for months. Save the spreadsheet on your computer and print out a copy to file into a financial folder with pay stubs, payment receipts and other current information.

4

Calculate your debt-to-income ratio by looking at the debt spreadsheet you created and factoring in your monthly income. Then determine how much you need to spend on food, gasoline and other living expenses and add these figures to your spreadsheet.

5

Update your spreadsheet at the end of each month so that you know which debt payments you successfully made, how much income you earned and how much debt you still owe.

6

Create a budget based on how much you earn, how much you owe each month and how much living expenses you need to more effectively reduce debt. Speak to a financial adviser for help budgeting. It's easier for a professional to help you when you have all of your debt and income information calculated.

7

Contact your creditors if you are not earning enough income to pay off monthly debt payments. If you explain your situation, you may be able to get an extension with a lower monthly payment. Keep in mind that you will be paying more interest this way, but in the short term it can help you make ends meet.