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Determining Your Current Debt Situation

Debt reduction often ranks as a primary financial goal. Since most of us incur debt at some point in our lives, effective debt management is critical to a sound financial plan.
The first step in assessing your debt is to determine how much you currently owe.

Step 1

Tip 1 Tip 2

Your Total Debt Service Ratio

Type
(i.e., mortgage, car loan, credit card, line of credit, RRSP loan, other)		 Outstanding Balance $ Monthly Payment $ Interest Rate %
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
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Tip 1
Increase the frequency of your payments.

One of the best ways to decrease your debt and to reduce your interest costs is to increase the frequency of your payments. Not only will you pay less in interest, but you will pay off your debt faster.

 
Tip 2
Pay off your most expensive debt first.
This is not the debt with the highest balance, but the one with the highest interest rate.
Once you've paid off the most expensive debt, apply the same payment amount to the second debt listed. Continue to follow this strategy until you have worked through the list.

However, don't ignore your other debts ...continue to pay at least the minimum on these.