It is rare that you will come across someone who actually loves the pressure of carrying personal debt. Whether this amount is $2,000 for Jenny or $50,000 for Teddy, the amount isn’t as important as the fact that it is debt. Eventually, whether you are more like Jenny or more like Teddy, you will decide it is time to take action and put together a debt repayment program. Here are the three D’s of debt repayment that can help put a successful plan in place.
1. Determine. The first thing you will need to do is determine two things as they relate to your debt repayment program. The first is how much you can afford to repay on a monthly basis. You can realize this through the dreaded budgeting process. The second thing you need to determine is which debt needs priority and what debt can be less of a priority. You will normally base this determination on rate, but it could also be based on cash flow.
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. Probably the most important aspect of a debt repayment program is discipline. As with any program, discipline will allow you to continue with your commitment (monthly repayment amount) and to see the program come to an end. But with debt in particular, discipline means not using available credit, it means not getting more credit, and it means monitoring your progress as you go along.
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.
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