reduce my debt

Okay, while today I did get a money order for a payment that will get rid of one debt, I need to write out what steps I need to get done.

1) List out all my creditors. This seems obvious, but there are a few I am sure I will over look if I don’t state this explicitly,

2) Address debts which are not legitimate. – I have one debt that I know is being held against me that is not legitimate. It will take time and effort to resolve, but I need to get it cleared up.

3) Get all balances for debts. There is at least one debt where I do not know my current balance. I need to send a letter to get my record of payments and current balance.

4) Add up all debt. This is just so I know what 1/5th of the debt is, which is my goal to have paid off for the year.

5) Determine what to address when. Some debts are more important than others. I need to list out and prioritize.

6) Get’em done! All this writing and planning is for naught if I do not pay the bills. Need to keep this front in center in my mind and try to stick to plan. I am sending out payments for January, but I need to make a plan to address all debts and which I can refer to for reinforcement and guidance.

I think at this point my goal should be to have 1-4 addressed by 1 February. Setting up a reminder for this one for one week.

I didn’t choose “Pay off my debt” for this one, as I am thinking of what I would like to see happen this year, and I do not think I could reasonably expect to have all of my debts paid off within that time frame. However, I would like to see myself having reduced my amount of debt by about a fifth by the end of the year. I think that would be a good start, and something that would be something I could see and feel as progress, and build on for the future.