This is part one of a multipart series. You can find Part Two here.
Debt is one of the nastier four letter words in some circles. In fact, it is so gross that many people want to destroy their debt as fast as possible. They take it as serious, or more serious, than their jobs. I can definitely understand why people would want to destroy their debts, especially the high interest rate debts so I thought I’d let you in on the secrets of how to destroy debt like it’s your job.
In order to treat anything like your job, you have to get serious about it (at least I hope you’re serious at your job). If you just want to kinda sorta get rid of your debt, it isn’t going to work. You won’t annihilate it quickly and you might end up in more debt! Yikes. So where to start after you decide you’re serious?
Collect All Debt Paperwork Or Pull A Credit Report
The best way to get started is to know your debt like you know the back of your hand. Get all of the paperwork related to any debt you may want to destroy. Whether the debt is a credit card, a mortgage or a student loan you probably received or signed paperwork at some point in time. Go dig it out…. I’ll wait!
Of course, there is a chance you don’t even know everyone you owe money to… a very scary thought! What do you do? You pull your free annual credit report. Don’t know how? Check out this detailed step by step post to get started. Make sure you follow the instructions and get the free report rather than a report that requires you to sign up for some service.
Once you have the credit report you can take a look at all of your outstanding debts and then go find the paperwork or request paperwork from your lenders. After you have all of the paperwork present, write down the terms of all of your loans. Important factors include the time period of the loan, interest rate, any fees or other monetary information. Once you have this information you’re in a good position to get started in the epic battle of destroying your debt.
But Wait… Why Are You Destroying Debt In The First Place?
Before you get started on destroying your debt, you need to figure out why you got into the debt. Why? Because if you don’t know why you got into debt, you could easily slip further into debt. Before you analyze which debt to pay off first, you really should get to the bottom of why you got into debt.
For some, figuring out why you ended up having a pile of debt up to your eyeballs may be an easy analysis. For instance, if your only debt consists of student loan debt from your college years it might be straight forward. However, if you maxed out six credit cards with random purchases here and there you might need to do a bit more digging. Once you’ve found the real reason why you’re in debt, you’re ready to start to destroying debt like it’s your job.
Go figure out what debt you have and why you’ve gotten to the point you’re at today. Then, continue on to Part Two of How To Destroy Your Debt Like It’s Your Job.
Do you have a massive amount of debt you want to destroy? Share your debt story in the comments below!