Three D's of Successful Debt Repayment PDF Print E-mail
Written by Chris Blanchet   
Tuesday, 28 July 2009 10:06
Very few people actually enjoy the pressure associated with carrying debt. While we are all different and carry different debt loads, the point is that debt wears us down. It's not so much the amount as it is the concept. Eventually, we come to a point in our lives where decide to hunker down and come up with a debt repayment program, but since this is new for us, we often don't know where to start. Here we put together the three D's of debt repayment.
by ChrisBlanchet


Very few people actually enjoy the pressure associated with carrying debt. While we are all different and carry different debt loads, the point is that debt wears us down. It's not so much the amount as it is the concept. Eventually, we come to a point in our lives where decide to hunker down and come up with a debt repayment program, but since this is new for us, we often don't know where to start. Here we put together the three D's of debt repayment.

1. Determine. In this stage, you will want to determine a couple of things. First, determine the amount you can afford to inject, on a regular basis, into your debt repayment program. This will often start with creating what traditionalists call a budget. The next part involves determining what debt to prioritize. Ideally, you will want to repay the higher-rate debt first.

2. Devise. At this stage, you will need to devise a plan. As far as a debt repayment program is concerned, the devise stage involves putting together a system that will show what your balance will be after each and every month. This is particularly important because if you have a large debt load or you are not repaying a large amount every month, then the balances will not move much. By plotting your debt repayment program over the course of several months, you will be able to monitor your progress.

3. Discipline. This third and final D is probably the most difficult. For this reason, it is also probably the most important. Being disciplined with your debt repayment program means sticking to your monthly repayment amount and not using or getting more credit. As well, discipline means setting aside a few minutes every month to monitor your progress with every month.

Coming up with a debt repayment program does not have to be as difficult and painful as filing your annual taxes. In fact, the whole process will probably teach you a thing or two about your own personal finances. When you keep to these Three D's, you are more likely to come up with a solid plan that will help you succeed in repaying your debt.

DISCLAIMER: This article is provided as information only and is not to be taken as financial advice.

Chris Blanchet is the author of the Personal Finance E-Book Help Fix My Finances, which incorporates all of the three D's discussed here. In addition, he maintains a Debt-Free Blog at How To Repay Debt.com.