Monday, 06 Sep 2010
You are here:
The Three D's of Debt Repayment
Written by Chris Blanchet   
Saturday, 01 August 2009 17:59
Nobody likes carrying debt. Whether it is $5,000 for Ted or $55,000 for Tina, debt wears on all of us. However, whether you are more like Ted or more like Tina, there comes a time when we decide to sit down and draft a debt repayment program. But where do we start? Here are the three D's of debt repayment.
by ChrisBlanchet


Nobody likes carrying debt. Whether it is $5,000 for Ted or $55,000 for Tina, debt wears on all of us. However, whether you are more like Ted or more like Tina, there comes a time when we decide to sit down and draft a debt repayment program. But where do we start? Here are the three D's of debt repayment.

1. Determine. With this "D" you determine two things. The first is how much you can put into your debt repayment program and the second is which debt you will target right away versus which can wait. When determining the amount you can repay, you will likely create what is known as a "budget," and when determining which debt to repay first, you will need to know your interest costs.

2. Devise. At this stage, you will need to devise a plan. As far as a debt repayment program is concerned, the devise stage involves putting together a system that will show what your balance will be after each and every month. This is particularly important because if you have a large debt load or you are not repaying a large amount every month, then the balances will not move much. By plotting your debt repayment program over the course of several months, you will be able to monitor your progress.

3. Discipline. Probably the most important aspect of a debt repayment program is discipline. As with any program, discipline will allow you to continue with your commitment (monthly repayment amount) and to see the program come to an end. But with debt in particular, discipline means not using available credit, it means not getting more credit, and it means monitoring your progress as you go along.

Coming up with a debt repayment program does not have to be as difficult and painful as filing your annual taxes. In fact, the whole process will probably teach you a thing or two about your own personal finances. When you keep to these Three D's, you are more likely to come up with a solid plan that will help you succeed in repaying your debt.

Information:

Chris Blanchet is the author of the Personal Finance E-Book Help Fix My Finances, which incorporates all of the three D's discussed here. In addition, he maintains a Debt-Free Blog at How To Repay Debt.com.
< Prev   Next >