7-Step Action Plan to Reduce Credit Card Debt

First of all, it is important to know what you are doing with the money you have so that you can gain a clear understanding of where you are right now. To most people, the idea of filling out a Daily Spending Habits Sheet, a Balance Sheet or a Cashflow Statement is about as enjoyable as having a tooth pulled. 

However, if you don’t feel like doing this assignment, then that is the reason you MUST do it – it is vital to your financial betterment.

Step 1: What level of debt do you live with?

It’s time to put a figure on your debt and get real about taking action. Do you know how much living with debt is costing you?

Balance Sheet

CASH ASSETS 

Savings accounts $
Cheque accounts $
Term deposits $
Life insurance cash values $
Cash management accounts $
Total cash assets $
Other 

INVESTED ASSETS 

Superannuation $
Stocks/shares $
Bonds $
Managed funds $
Real estate $
Partnerships $
Art/coin/stamp collections $
Other $
Total invested assets $

MATERIAL ASSETS 

Residence $
Cars/Boats/Motorbikes $
Personal property (jewellery, art, etc) $
Total material assets $

TOTAL ASSETS $

LIABILITIES 

Credit cards $
Car loans $
Personal loans $
Home loans $
Miscellaneous loans $
Investment loans $
Total liabilities $

NET WORTH (total assets minus total liabilities) $