Effective debt management is a key element of a household's financial well-being. Household debt is the total amount a household owes to creditors. Some debt, such as a mortgage or student loan, is almost unavoidable and can actually be beneficial financially. Other debt, such as credit card and other consumer debt, can quickly wreck a budget. Calculating household debt is one component of laying and maintaining a solid financial foundation.
Instructions
- 1
Gather the most recent account statement from each of your creditors. Include credit cards, mortgages, lines of credit, auto loans and any other debts. You may include the debts of all household members or just your own.
2Write the account names in a column and their balances in a separate column.
3Add the account balances to determine total household debt.
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