When you want to go somewhere you need a few different pieces of information. Where do you want to go? Where are you now relative to that place? And how are you going to travel? If you are reading this there is a good chance that the goal you are reaching for is to clear your debts. And with the free information available here and from other sources you should be able to make a plan for how to get there. But before you do that you need to know exactly where you stand as that will have a significant impact on the decisions you are going to make in the near future on your way out of debt. In this article I’ll tell you why it’s important to know where you stand and exactly what it is you need to know about your current situation.
If we stick with the travel metaphor it’s easy to see that you might head off in the wrong direction if you don’t know exactly where you are. Let’s say you want to go to Las Vegas and you start traveling east because you think you are in L.A. (west of Vegas), but if you in fact are in Houston (east of Vegas) you are not likely to get there soon. I know it’s a stretch, but it really makes things clear. In your case the right direction is always up, but depending on your situation there can be different ways up and some will be more effective than others.
Get a piece of paper in front of you if you are ready and write down exactly how much you owe. Note down all the separate loans if you have more than one, the minimum payments and interest rate of each one. And then proceed to see how much you are spending each month and how much you are making. Write that down as well. Are you spending more than you are making? If the answer is yes then you have to realize you are slowly but surely headed towards bankruptcy unless you get some clear debt relief solutions. And start making the changes necessary in your life.
If you don’t just read the article, but sit down and write down exactly where you stand you will have a much better chance at making the right and necessary decision on your way out of debt. It will only take you half an hour and will most likely save you much pain and frustration in the future.