Do a Debt Reality Check

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Paying down debt will help you reach your financial goals. It usually starts with having a handle on your credit card balances. The average credit card holder in second quarter of 2023 owed $6,568 to credit card companies. Compare that to the second quarter of 2022, when the card debt was $5,963, and it’s clear that the problem is worsening.

There is other debt besides credit cards. It’s time to take charge of all debt instead of it controlling you. It’s time to identify it, develop a plan, and start paying it down.

List Everything Owed

Start with making a list of everything you owe. This includes monthly credit t card payments, car payments and your mortgage or rent. Don’t forget to add in ongoing expenses like phone bills, utilities, Wi-Fi, and cable. You have to eat. What do you spend on food each month?