How to Pay Off Debt by Organizing Your Bills

Let's look at how to pay off your debt by organizing your bills. First, let's take a quick poll. Do you have a pile of unopened bills on your desk, or on the kitchen counter or on the kitchen table? Can you put your hands on the last power bill or credit card bill you received in five minutes or less? Where is the last property tax notice you received and when is it due? The way you answered these questions could make a big difference in your debt picture. You may be the kind of person that can keep track of your finances off of the top of your head but most of us need to be more organized. You could be on the road to financial freedom if you take the steps to pay off debt by organizing your bills.

Not being organized is one of the major reasons many people get into debt in the first place. Organizing paperwork alone won't pay off your debt but it's a good place to start. By organizing your bills in one place it makes it easier to see your big financial picture. This also makes it easier to keep up with due dates and therefore plan to make payments on time. That alone saves money on interest payments and late fees. So, let's look at how to pay off debt by organizing your bills.

Instructions

1

To pay off your debt by organizing your bills, gather all of the current statements from your monthly bills. Remember to include any payments that are on weekly or quarterly cycles. Use your check book register and canceled checks to help find all of your payments due.

2

Sort the pile of statements into categories such as utilities, cable, credit cards, tuition loans, etc..,. You may find that organizing the statements by alphabetical order works better for you. Use a three hole punch to punch holes in the statements to fit into a three ring binder.

3

Put the statements into the three ring binder. Insert dividers between the statements to separate the categories. Replace existing statements with new ones when they arrive in the mail. Keep this binder in a handy place and refer to it often to keep track of your finances and to pay off your debt by organizing your bills.