“Where do I start…What do I do first?”
Well, the first step is recognition that there is a problem. I know that sounds like the opening speech in some AA intervention group, but it’s the truth. You have to think of the process that has gotten you to this point as an unhealthy addiction to stuff that you most likely don’t need, and in most cases don’t even want.
So now, facing the debt head on. You need to know what you owe and to whom it’s owed.
I don’t care how you do it, spreadsheet, word doc, on a napkin, whatever–you need to write down each and every debt you have, and how much you owe. Are you current? what are the minimal payments on each debt? Is anything in collections? (we’ll deal with those collection debts in a later post).
Next, how much do you make monthly? What do you net monthly? It’s important to know how much you truly have to work with after taxes, insurance, and what ever else comes out of your paycheck before you get your hands on it.
So, those are your first steps. You need to figure out what you owe and what you make.
Take care of those two items and lets move forward on a plan…
We’ll see you on the next steps, stay tuned and share this with a financial workout buddy to really help your experience.
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