Prioritize Your Debts - Identify Essential and NON-Essential Debt
Prioritize your debts into two categories, ESSENTIAL Debts and NON-Essential Debts.
This credit repair strategy is necessary to plan a budget that will effectively attack your
credit problems.
Many of us don’t know exactly what debts we have. Often we simply ask ourselves on
payday ---
‘Do I have any debts to pay today?’ The response is often… ‘CRAP! I forgot about that one!’,
then we decide 'on the run' if the debt we ‘forgot about’ is important enough to pay now or
maybe it can wait until ‘next payday’.
This is a 'get out of debt' plan.
This credit repair strategy is necessary to plan a budget that will effectively attack your
credit problems.
Many of us don’t know exactly what debts we have. Often we simply ask ourselves on
payday ---
‘Do I have any debts to pay today?’ The response is often… ‘CRAP! I forgot about that one!’,
then we decide 'on the run' if the debt we ‘forgot about’ is important enough to pay now or
maybe it can wait until ‘next payday’.
This is a 'get out of debt' plan.
If I may be so bold to suggest an
Action Plan that seems to help many
thousands of successful people,
which is to PRIORITIZE YOUR
DEBTS ON PAPER.
This step will go far in getting a
handle on your debts and will expose
expenses that you and your family
could possibly do without.
Below are two lists of ESSENTIAL
Debts and NON-Essential Debts.
Print this page and use it as a guide
for yourself to help prioritize your
debts.
ESSENTIAL DEBTS
Action Plan that seems to help many
thousands of successful people,
which is to PRIORITIZE YOUR
DEBTS ON PAPER.
This step will go far in getting a
handle on your debts and will expose
expenses that you and your family
could possibly do without.
Below are two lists of ESSENTIAL
Debts and NON-Essential Debts.
Print this page and use it as a guide
for yourself to help prioritize your
debts.
ESSENTIAL DEBTS
- Rent
- Mortgage
- Utility Bills
- Child Support
- Unpaid Taxes
- Medical Insurance
- Court Judgments
- Student Loans
- Car Payments ***
- Secured Debt ***
NON-Essential Debts
- Credit Cards
- Department Store Cards
- Gasoline Cards
- Legal debt
- Medical debt
- Accounting debt
- Personal Loans to Friends and/or Relatives
- Newspaper and Magazine Subscriptions
- Club Memberships
- Cable Television (Extra Channels)
- Cell Phone (Excessive ExtraMinutes,Text Messaging)
- Phone Features (Many extras that you pay for but do not
use often or not at all)
This is not an all-inclusive list.
As you create your list, you may discover debts that are not listed here and are unique to
you and your family. Give those items serious consideration and list them in the appropriate
ESSENTIAL or NON-Essential category.
Do your best to create as complete a list as you can.
Do not be afraid of the mantra ‘CRAP! I forgot about that one!’, just so as long as you don’t
follow this up by leaving that debt off the list.
As you create your list, you may discover debts that are not listed here and are unique to
you and your family. Give those items serious consideration and list them in the appropriate
ESSENTIAL or NON-Essential category.
Do your best to create as complete a list as you can.
Do not be afraid of the mantra ‘CRAP! I forgot about that one!’, just so as long as you don’t
follow this up by leaving that debt off the list.
Debt Solutions to help you improve your credit score!
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