The Three D’s of Debt Repayment
Jul 26, 2009 Business Loan
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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. 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. 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.
Coming up with a debt repayment program does not have to be as difficult and painful as filing your annual taxes. In fact, the whole process will probably teach you a thing or two about your own personal finances. When you keep to these Three D’s, you are more likely to come up with a solid plan that will help you succeed in repaying your debt.
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Tags: Business Loan, credit, Debt Consolidation, debt repayment, personal finance management, personal finances, repay debt
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