Home Investment How to Create a Manageable Debt Repayment Plan

How to Create a Manageable Debt Repayment Plan

by Stacey Santos

Did you know the average American has roughly $51,900 worth of debt?

If you’re dealing with a lot of debt, you might be concerned about how you’re going to repay everything. Fortunately, a debt repayment plan can help you determine how you will get out of this hole if you’re in this position.

Read on, and you’ll learn how you can create a plan that’ll help you repay your debts. If your debts are currently getting you down, this post will help you develop a plan that’ll help you feel positive about the future.

How to Create a Manageable Debt Repayment Plan 1

Midsection of a lawyer taking bribe from the client at a desk in courtroom

Let’s begin!

List Your Debts and Create a Goal

If you want to create a debt repayment plan, you first need to identify all your debts, so you can actually work out how much you owe. Once you’ve done this, you need to create a goal regarding how quickly you want to pay off your debt. For instance, you might say that you want to pay off your debts in six months. Well, if you know how much debt you have, you can then determine how much money you need to put aside each month so you can hit your repayment goals.

When you’re doing this, you might also want to note down the varying interest rates associated with each of your debts. That’s because, in some cases, it can be a good idea to prioritize the debts that have the highest interest rates. In doing so, you can then reduce the overall costs associated with your borrowing.

Store This Information in a Central Location

Once you’ve listed out all your debts and have a goal, you want to store all this information conveniently. It will be a lot easier for you to get a snapshot of where you stand daily if you do this.

If you want to keep things simple, you may want to use a debt repayment plan worksheet. These kinds of worksheets aren’t hard to find, and there are lots of websites that offer excel templates for this kind of thing.

If you’d like to take things to the next level, there’s also the option of using a repayment plan app.

One of the good things about these apps is they can sync up with your bank and credit card accounts. This means they’ll update automatically after paying a debt, and this can help you avoid the hassle of updating a spreadsheet manually.

Are You Going to Create a Debt Repayment Plan?

Creating a debt repayment plan is vital if you want to pay off your debt promptly.

If you create a repayment plan, the most important thing is that you stick with it. If you can force yourself to adhere to your plan, you should be able to tackle your debt within a reasonable amount of time.

Would you like to read something else like this? Please go to our blog to see some of the new posts we’ve published!

related posts