How to Pay Off Debts When You Don't Know Where to Pay

Debt can be frustrating and can easily get out of hand for even the most organized people. When you finally decide to get your finances in order and pay off debt, it can seem overwhelming to figure out what you owe, how much you owe and where payments should be sent. Don't be intimidated because the hardest part is deciding to get organized. Once you've made that decision and committed yourself to paying off debt, finding out what you owe is relatively easy, and with time and patience, you too can be debt free.

Instructions

1

Gather all of your financial paperwork. This includes credit card statements, mortgage agreements and loan papers. Sometimes just getting everything into the same spot can jump start your debt repayment process.

2

Make a list of all the debts you are responsible for that you can remember. Write down what the debt is for (such as car payment), how much you owe and the interest rate if you know it.

3

Obtain a copy of your credit report. Everyone in the U.S. is entitled to one free copy of their credit report from each of the three credit bureaus every year. Sometimes there can be items shown on one bureau's credit report that will not be shown on the other two, so its best to order all three at once. You can get your free credit report by calling (877) 322-8228, or by going to the website listed in the resources section of this article.

4

Examine your credit report. A large majority of credit reports contain errors, so if you see something you don't recognize, follow the instructions on the report to file a dispute.

5

Use the information in your three credit reports to complete your list of debts owed. Include amount owed, monthly payment information and interest rates.

6

Contact creditors if necessary. For any accounts shown on your report to which you have not been making payments, contact the creditor to work out a payment agreement. The creditor may offer to make a deal with you so that it will be more likely to receive payments.

7

Get organized. Use a calendar to mark due dates for each of your monthly payments. Send your payments off in time each month so that they are on time, which will help you to avoid late fees and interest rate increases.