Very few people actually enjoy the pressure associated with carrying debt. While we are all different and carry different debt loads, the point is that debt wears us down. It’s not so much the amount as it is the concept. Eventually, we come to a point in our lives where decide to hunker down and come up with a debt repayment program, but since this is new for us, we often don’t know where to start. Here we put together the three D’s of debt repayment.
1. Determine. With this “D” you determine two things. The first is how much you can put into your debt repayment program and the second is which debt you will target right away versus which can wait. When determining the amount you can repay, you will likely create what is known as a “budget,” and when determining which debt to repay first, you will need to know your interest costs.
2. Devise. At this stage, you will need to devise a plan. As far as a debt repayment program is concerned, the devise stage involves putting together a system that will show what your balance will be after each and every month. This is particularly important because if you have a large debt load or you are not repaying a large amount every month, then the balances will not move much. By plotting your debt repayment program over the course of several months, you will be able to monitor your progress.
3. Discipline. Arguably the most important D of all of them is discipline. When it comes to a debt repayment program (or any program for that matter) discipline is required in order to ensure the plan is followed through to the end. With debt, this means chugging along at a regular pace with your repayment amount and not touching available, revolving credit. It means being disciplined to review your accounts on a regular basis and tracking your progress against your plan.
Putting together a debt repayment program does not need to be a painful experience. In fact, the process should be an educational one that might even help keep you on track. Keep in mind that the three D’s above are the foundation to a successful plan and you will find success in repaying your debt.
