Debt free living is quite hard for most people in today’s unfavorable economy. Even with a job, many face the challenge of paying off their bills. Hence, many are strapped by debts. There are many kinds of debts that one can be found committed to: car loans, housing loans, insurances, credit card loans and even business loans, to name a few.
It is wise to keep track of your debts so that you can pay them off regularly and pay them off fast. Loans are also considered debts as they are financial obligations that are legal in nature. Repayments of loans are to be done on a regular basis until the total loan amount is cleared, usually with interest.
Hence, it is good to engage a debt reduction tool that helps you track the debts you have. This will help you manage your finances properly so that you will not fall further into debts until bankruptcy. You need to be disciplined not to take on more debts by committing to more loans beyond your repayment capability.
Hence, a debt reduction template can have the following columns in its header:
* Types of debts
* Initial debt amount
* Monthly repayment
*Date of completion
You can list the creditors or types of debt in any order you like. If it is an electronic debt reduction template, you can sort it in different orders for references.
Consider the attached sample template for your convenience.