The first step in getting out of debt is to find out to whom you owe and how much you owe. Using your credit statements as a reference, list the following information about each debt.
- Name of creditor.
- Creditor’s address.
- Creditor’s telephone number.
- Your account number.
- Collateral (property or any other asset that secures a debt).
- Balance owed.
- Remaining number of payments.
- Monthly payment.
- Payment due date.
- Amount last paid.
- Date last paid.
- Type of legal action taken (e.g., garnishment or repossession).
- Collection agency or attorney.
It’s not possible to work toward getting out of debt unless you know how much you owe and to whom.
But you can do it!