When was the last time you sat down and added up every debt you have and every payment you owe? When was the last time you compared those debts and payments to every asset you own and every dollar you make? For most of us, we go through life, month after month, simply paying the bills as they come in and hoping there is money left at the end. This is no way to manage your debt. We must take a proactive approach.
The very first step to financial freedom and debt elimination is to completely understand your debt. This means knowing the who, what, when, and how of your debt: who you owe, what you owe, when it will be paid off, and how you will accomplish that. Start by analyzing and totaling every debt and payment you have to determine your total liabilities. This is essential to debt elimination and wealth management.
Very true. You should also not be afraid to contact your creditors if you are in trouble. It is in their best interest to keep you financially afloat.