How to Acknowledge Debt

Some type of catalyst often triggers the need to acknowledge the degree of debt you have. It might be the loss of a job, a marriage or the birth of a child. Other times, it is debt collectors calling and pressuring you to pay off a debt. Debt can spiral out of control rapidly whether it is caused by medical bills or drug, alcohol or spending addictions. In the vast majority of cases, it just sneaks up on people, one small purchase at a time. Acknowledging you have the debt is the first step in eliminating it.

Instructions

1

Acknowledge your debt by understanding exactly how deep in debt you are. This means an honest assessment of your financial situation. You cannot acknowledge your debt if you are in a state of denial.

2

Gather all your bills together and sit down with a pencil and paper. In one column write down all credit card debts and loans, along with the minimum payment amount.

3

Write down your monthly bills in another column along with the average payment.

4

List your income in a third column.

5

Add together the first two columns and compare them to the third column. This will allow you to determine the degree of your debt.

6

Look at the cold hard facts of what you owe compared to your income. This should force you to acknowledge the your debt.