First thing first – know what you owe

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The key to any financial problem is knowledge. Without a clear understanding of what you need to achieve, you will most likely not reach your goal. This is just as true about debt management as is it about wealth creation. Here are a few easy steps to take to start taking control of your debts:

  • If you haven’t already, make a list of all your creditors (people/financial institutions) that you owe money to.
  • Next to each of your creditors write down how much you owe each of them in total – i.e. the balance outstanding
  • Write down what the minimum payment is to each of your creditors
  • Lastly, write down what the interest rate you’re being charged by each of your creditors is (do this as an annual percentage rate)
  • Now that you have all of this information written down, you are in an excellent position to be able to start taking control of your debts!

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