11 Steps to Pay Off Credit Card Debt by 2021
In the years before the COVID-19 pandemic, debt was already a major problem for Americans. A Northwestern Mutual study in 2018 found that the average personal debt (excluding home mortgages and those with some debt) exceeded $38,000. Things got worse.
1. Tally Up, Review and Analyze Your Debts
Dedebt says that the first step in tackling debt is to make a complete inventory of all your debts. He said, “Know what amount is owed, to whom and (where) you are with payments.”
You’ll need to look for any suspicious behavior as identity theft is a real threat. You can then take the time to examine your spending habits and patterns.
Nishank Khanna (CFO at Clarify Capital) said, “Take a hard glance at where your money goes and how much is coming into.” Understanding your financial habits will help you identify areas where you are spending too much and areas where you can cut back to save. Our spending habits often tell us surprising things about our relationship with money.
Dvorkin also stated that it is important to obtain your most recent credit report.