Bob asked:
Have decided to decrease my debt by elimination, but not sure what the priorities should be or how to go about listing them in my budget.
Have decided to decrease my debt by elimination, but not sure what the priorities should be or how to go about listing them in my budget.
The obvious “must pays” …rent/mortgage, utilities, auto payment, repair, gas, food.
Don’t forget to look at what you are spending eating out. This may be an area to reduce.
Then entertainment and clothing, etc. should be adjusted as necessary to balance.
You should also be saving some money for emergencies/retirement/future big purchases.
The entertainment can really trick people up..as it is easy to overspend.
List all your debts from smallest to largest. Pay the minimums on all debts except the smallest one. Throw all of your financial efforts into paying off that smallest debt first. Psychologically, you need some quick wins in order to build motivation and momentum. You’re more likely to stick to your plan to eliminate debt when you can see fast results. Good luck.
I have to disagree. I think that it is much better to pay off the debt with the largest interest rate first. If you can roll your credit card debt into a new account with 0% interest rate, that will accelerate your debt elimination since you will be paying nothing toward interest and all of your payment will go to principal.
you have an item for long term debt and also one for savings!!! if you are realliy serious emial me and i will detail you how my budget works!!!