Bad Debt Has the Name for a Reason

Nothing will cause you more grief in your life than Bad Debt. It is any personal debt other than a mortgage or a student loan. Credit cards, personal loans, car loans, or department store credit. All are bad debt and can ruin you life.

It will steal your future and make the present miserable. This type of debt begins you on the road to enslavement and may take you to bankruptcy. Make it your sworn enemy. Treat it with care, never turn your back on it. Bad debt turns loose the interest monster.

It really is simple to get rid of, yet it can be difficult, depending on where you find yourself. Most people tend to disregard it, looking for an easier solution. They want someone else to make their debt go away.

You Can Get Rid Of Your Bad Debt

You need to know while it is simple, it is not easy. But you also need to know that what you learn doing this will serve you well for many years after the bad debt is gone as you continue in the same way with your savings and investments. What savings and investments?, you say. They come later, let's get you out of debt...

There are two ways to do this. You can use some inexpensive debt software, , or you can figure it the hard way using some debt forms and a

calculator. You will need ALL of your credit statements including credit cards, personal loans, department store cards, car loans, home mortgage, doctor, dentist and other medical bills. Anything that you make a monthly payment on because of a debt you owe.

It is amazing how much bad debt we rack up isn't it? Anyway...

List Every One Of Your Debts

On the forms list all of your debts. Right now the order is not important. List the person or company the debt is owed to in the proper column. In the column for it list the monthly payment. (For credit cards list the minimum payment due monthly). In the column marked balance list the amount owed, on the accounts.

Now in the rank column you need to put your debts in order by the lowest balance owing to the highest. Just put a number by them. Number one for the lowest balance. Number two for the next lowest balance and so on until you have all of your bills prioritized.