Lesson 3: Debt Management - Checklist

Debt Inventory

Gather all debt statements (credit cards, loans, mortgages, etc.)

Create a complete list of all debts with balances, interest rates, and minimum payments

Calculate your total debt amount

Determine your debt-to-income ratio

Categorize debts as high-interest (>8%), moderate (4-8%), or low-interest (<4%)

Choose your repayment method (avalanche or snowball)

Ensure you’re current on all minimum payments

Calculate your “debt snowball” amount (extra money for debt each month)

Create a month-by-month debt payoff timeline

Set up automatic payments for at least the minimums on all debts

Create a visual tracker to monitor progress

Research balance transfer offers for high-interest credit cards

Check refinancing options for student loans and mortgages

Contact creditors to negotiate better interest rates

Evaluate debt consolidation options (if appropriate)

Document all changes to terms and conditions

Identify your debt triggers (emotional spending, lack of planning, etc.)

Create sinking funds for predictable expenses

Implement a 24-hour rule for non-essential purchases

Establish clear criteria for acceptable future debt

Develop a plan for handling financial emergencies without new debt